Name of the Project
Manono lithium and tin project.

Location
Democratic Republic of Congo (DRC).

Project Owner/s
AVZ Minerals.

Project Description
A definitive feasibility study (DFS) has confirmed the project’s outstanding metrics. The project has total ore reserves of 93-million tonnes grading 1.58% lithium oxide and 988 g/t tin.

The DFS has shown the project to be robust and viable, and envisages conventional openpit mining, producing about 700 000 t/y high-grade lithium and 45 475 t/y of primary lithium sulphate over a 20-year mine life.

The project has a life-of-mine beyond 20 years, based on a 4.5-million-tonne-a-year operation underpinned by the ore reserves.

Potential Job Creation
Construction is expected to create 400 to 450 jobs, while in the long-term 500 to 550 jobs are expected to be created.

Net Present Value/Internal Rate of Return
The project has a pretax net present value on a 100% basis, at a 10% discount rate, of $2.35-billion and an internal rate of return of 53.15%, with a payback of 1.5 years.

Capital Expenditure
Initial construction capital is estimated at $545.5-million, including a 10% contingency.

Planned Start/End Date
The project is expected to start construction in August 2020, subject to Covid-19.

Production is expected to start in the first quarter of 2022, subject to Covid-19.

Latest Developments
Following the publication of the AVZ’s DFS results for the Manono project in April 2020, the focus has quickly turned to the design and imple­mentation phase. Planning also continues for the early works programme and the conversion of the exploration licence into the mining licence.

Owing to ongoing travel restrictions resulting from the global Covid-19 pandemic, some of these proposed early works will be delayed until senior management can return to the DRC. This will also affect discussions with government about the tax regime proposed for the Manono Special Economic Zone, which have also slowed down, but are still in progress.

Meanwhile, the request for tender for the process plant package for the Manono lithium and tin operations (MLTO) was issued to the market on May 8, 2020, and closed on July 24, 2020. Several companies that responded to the call for expressions of interest or contributed during the DFS programme and demonstrated their ability to conduct the construction of the MTLO plant, have been approached and invited to bid for the plant engineering, procurement and construction contract, which is expected to be awarded in August 2020.

Other tender packages are being prepared and will soon be released to the market.

While AVZ has invited tenders for various design and construction works, planning of the early works programme is continuing unabated.

The current Colline Manono camp site, catering for up to 55 workers, will be expanded during the year to accommodate an extra 100 construction personnel during the expected 12 to 18 months required to build the MLTO plant and associated infrastructure.

Other works, such as the development of modern, well-drained access roads to and from the plant site, will also be completed as part of this programme. This will facilitate an immediate start for the construction crew when they arrive in Manono.

The early works programme also includes the building of the site office and the fabrication workshop on site, allowing for the start of the apprenticeship training programme that is designed to select candidates for training and potential future employment at the site.

Key Contracts and Suppliers
GR Engineering Services (process plant); PAIE (metallurgical testwork consultants); ALS (metallurgical testwork laboratories); Coppern (high-pressure grinding rolls original-equipment manufacturer); Steinhart (ore sorting original-equipment manufacturer); Middindi Consultants (geotechnical study); RD Consultants (hydrogeology and hydrology); CSA Global (resources to reserves study and mine development); ERM (mine closure plan); CONSI (operational readiness); L&MGSPL (tail­ings storage facility); Dynamic IT (information technology systems); Infraology (technical rail due diligence); Roskill (marketing survey); Graeme Campbell and Associates (geoscience); EmiAfrica (economic- and social-impact assess­ment); FTI Consulting (financial modelling); KCS Mining (mine contractor costing); Increva (project management consultants); Nexus Bonum (ore sorting consultants); iSpatial (geographic infor­mation system mapping); and Wisedesign (hydroelectric power plant DFS).

Contact Details for Project Information
AVZ Minerals, tel + 61 8 6117 9397 or email admin@avzminerals.com.au.