According to Bloomberg News reported on November 22, the largest shareholder of Australian mining company AVZ Minerals Ltd said it would support the ouster of the company's board. That represents a major shift in the battle for control of a large, untapped lithium mine.
The Manono project in the Democratic Republic of Congo has the potential to become one of the world's largest sources of battery metals, but after securing exploration rights seven years ago, AVZ found itself Mired in litigation and arbitration against its partners and the Congolese government.
Competition to develop new lithium resources has grown in recent years in anticipation of explosive demand for electric vehicles, although prices have plunged this year due to oversupply.
Yibin Tianyi Lithium Co., a Chinese company that makes chemicals used in electric car batteries, said it would vote to remove the directors.
"We are very disappointed with the work of the current board," a company representative said in a written response to questions. "The Manono project has missed its prime development opportunity."
The group spearheading the campaign, Make Manono Great Again (MMGA), said Manono's second-largest shareholder, Zhejiang Huayou Cobalt Co, would also support the attempt to oust directors at a meeting in Perth on Thursday.
Huayou Cobalt did not respond to a request for comment, and AVZ declined to comment.
Yibin Tianyi and its affiliates control about 7 per cent of the Australian-listed AVZ mining company, while Huayou Cobalt owns about 6 per cent. MMGA Group accounts for only 0.14%.
AVZ had a market value of A $2.75 billion ($1.8 billion) before trading was suspended in May 2022 as it waited for Congo to convert an exploration license into one that would allow it to build a mine.
Congolese authorities revoked exploration permits entirely earlier this year due to ongoing clashes between shareholders and last month split the exploration area in two, handing the northern portion to Zijin Mining Group Co LTD and Congolese state-owned Cominiere.
AVZ and its managing director, Nigel Ferguson, argued that the move was illegal.
Last week, an arbitrator at the International Chamber of Commerce in Paris ordered Cominiere to stop any action to develop the license area until the International Chamber of Commerce (ICC) considers AVZ's complaint.
MMGA promised to end "all costly and ineffective legal matters" within a month of the appointment and negotiate with the government and shareholders to preserve at least part of the project and start development as soon as possible.
The fate of Mr Ferguson and his co-directors will ultimately rest with the Australian retail and institutional investors who control AVZ.
MMGA said the current leadership has pushed the Manono project to an impasse and could lose the entire asset.
Michael Carrick, who is running for a seat on MMGA's board, said: "The company is effectively drowning in a sea of litigation. The government has effectively shut the door on the current AVZ board and said enough is enough."
