PERTH (miningweekly.com) – ASX-listed AVZ Minerals on Monday told shareholders that the newly established government of the Democratic Republic of the Congo (DRC) had approved the draft inter-Ministerial decree and draft cooperation agreement with the lithium and tin developer.
The approval of both documents by the DRC government’s Council of Ministers would deliver significant fiscal benefits for the Manono lithium and tin project, once finalised, AVZ told shareholders.
“The approval of both the draft decree relating to the cooperation agreement and the daft cooperation agreement is yet another milestone for the Manono project,” said MD Nigel Ferguson.
“The final cooperation agreement will deliver significant long-term economic benefits for the project, as well as further underpinning our substantial investment in the DRC.
“It will also deliver long-term benefits for the people of the Manono region, including access to improved health and education services, stable employment opportunities and upgraded infrastructure including electricity supply.”
Ferguson said that the cooperation agreement also reinforced the DRC government’s pledge to financiers that the country was open for business to the international investment community
A definitive feasibility study into Manono has estimated that it would produce around 700 000 t/y high grade lithium and 45 475 t/y of primary lithium sulphate over a 20-year mine life.
The project is expected to require a capital investment of some $545.5-million, which will include transport upgrades and the rehabilitation of the Mpiana Mwanga hydroelectric power plant, which would account for $41.85-million and $46.54-million worth of investment, respectively.