PERTH (miningweekly.com) – ASX-listed AVZ Minerals has inked a strategic relationship agreement with China’s Huayou Cobalt Group to complete a definitive feasibility study on the Manono lithium and tin project, in the Democratic Republic of Congo.
AVZ said on Wednesday that Huayou would also be able to provide advice and assistance with project financing, offtake financing, strategic services, engineering, procurement and construction management, and cost effective transport options for Manono.
“AVZ values its existing relationship with Huayou very highly and this new agreement will see the two companies come even closer to advance the Manono project,” said MD Nigel Ferguson.
“We believe that bringing Huayou’s tremendous mining expertise to bear on the definitive feasibility study, financing and offtake negotiation will accelerate the commercialisation of the largest lithium orebody on the ASX and yield tremendous value for AVZ shareholders.”
AVZ holds a 60% interest in Manono with the rights to secure additional interests.
A recently completed scoping study at Monono estimated that a five-million-tonne-a-year operation could deliver some 1.1-million tonnes a year of lithium concentrate over a 20-year mine life, for a capital cost of between $380-million and $400-million.
The scoping study estimated a pre-tax net present value of around $2.6-billion, and an internal rate of return of more than 64%.