- AVZ Minerals (AVZ) is facing delays in obtaining mining licences for its Manono Lithium and Tin Project due to governmental changes in The Democratic Republic of Congo
- Decision-making processes and executive powers were suspended while a new cabinet was sworn in, temporarily halting AVZ’s application
- AVZ remains confident in being awarded the licence despite the delays but noted it could affect the bankability of its project in the interim
- AVZ Minerals shares are trading in the grey at 19.5 cents
AVZ Minerals (AVZ) is facing delays in obtaining mining licences for its Manono Lithium and Tin Project due to governmental changes in The Democratic Republic of Congo.
The company conceded anticipated timelines for the project would be pushed back after decision-making processes and executive powers were temporarily suspended while the country’s new cabinet was sworn in.
Formal documents in support of the mining licence were submitted in May this year, which AVZ said were likely to be “expedited” to keep it on track for its first lithium oxide content delivery by Q1 2023.
AVZ’s new projected timeline is assumed on the basis of receiving its mining license towards the tail end of 2021.
The company flagged this, in turn, could mean potential financiers may not consider the project “bankable” while the mining licence remains pending.
Despite the delays, AVZ said it remains confident the DRC will vote in favour of the mining licence and maintains a “cooperative working relationship” with newly appointed DRC Government officials.
Meanwhile, the company announced it had increased its stake in the project to 75 per cent and issued an updated mineral reserve statement for the Roche Dure prospect, which had increased by 41.6 per cent following a mine redesign.
AVZ Minerals shares were trading flat at 19.5 cents at 11:24 am AEST.