AVZ Minerals announced on January 15 that it had received the full $20 million funding facility promised last year by its partner, China’s Suzhou CATH Energy Technologies.
The Australian company, which claims the rights to develop the Manono lithium project in the Democratic Republic of Congo, said the payment signals CATH’s continued support despite growing uncertainty over the project’s future, according to Ecofin Agency.
A deal signed in January 2025 grants CATH several rights if AVZ ultimately secures its claim to Manono.
These include the option to take 100% of lithium output for five years, or until the expenses advanced by CATH are repaid. CATH would also be able to acquire an indirect 30.5% stake in the project.
Manono, the largest lithium deposit discovered so far in the DRC, has attracted multiple suitors.
AVZ conducted exploration there for several years through a joint venture with the Congolese state-owned miner Cominiere. Cominiere later ended the partnership and in 2023 partnered with China’s Zijin Mining to develop the project.
AVZ has launched several cases in international courts challenging the ownership changes, but no final ruling has been issued.
In recent months, another competitor has emerged: KoBold Metals. As relations between Kinshasa and Washington improved and the United States encouraged new investment in the Congolese mining sector, the California-based startup expressed interest in Manono.
In May 2025, KoBold and AVZ signed a framework agreement aimed at moving the project forward, under which AVZ would receive compensation in exchange for dropping its claims.
Talks to finalize the deal failed, and AVZ has since resumed its legal challenges, which had been temporarily suspended during negotiations.
Don’t Miss This:
Congo Pledges To Uphold Cobalt Quotas As Exports Resume ‘Within Days’
KoBold has maintained its interest in Congolese lithium, signing a separate framework agreement directly with the Congolese government on developing Manono.
While Kinshasa and KoBold have not provided detailed plans for the deposit, AVZ has stated it will continue defending its interests while remaining open to dialogue.
The past year’s developments have done little to clarify Manono’s future or which companies will ultimately develop the deposit.
Zijin has indicated production could start in 2026 but has provided few updates on mine construction progress.
AVZ has also faced scrutiny in Australia, where in November 2025 the Australian Securities and Investments Commission launched legal proceedings against the company, accusing it of failing to adequately inform investors about challenges in the DRC.
The Congolese government has provided few details on how it intends to develop Manono as the country’s first lithium mine. In December 2025, authorities signed an agreement with Washington to share a list of mining projects that could attract U.S. investment.
Mines Minister Louis Watum said the list would be sent to U.S. authorities this week, without confirming whether Manono would be included.
That appears unlikely, as the agreement stipulates that no project should conflict with international legal obligations.
The coming months could prove decisive in resolving the disputes delaying Manono’s development.
AVZ’s recent statements indicate that any outcome may not involve its return to the project, as the company is seeking “a commercial solution for shareholders.”
Don’t Miss This:
Glencore To Send First Cobalt Cargo Under Congo’s New Quota System
Image Credit: Le Monde
