AVZ Minerals has struck a strategic partnership with the world’s largest manufacturers of cobalt chemicals to advance its Manono lithium and tin project in the Democratic Republic of Congo.
The partnership with Zhejiang Huayou Cobalt, through group company Huayou Cobalt Group, will assist AVZ in respect to Manono’s definitive feasibility study (DFS), financing, engineering, procurement, construction management (EPCM) and transport of product to final recipients.
The China-headquartered company, a 9.47 per cent shareholder in AVZ, has also provided funding to assist the company’s delivery of Manono’s DFS this year.
Huayou regards Manono as one of the “standout development projects globally”, according to company president Hongliang Chen.
Manono was declared the world’s largest measured and indicated lithium resource in May.
“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,” AVZ managing director Nigel Ferguson said.
“We believe that bringing Huayou’s tremendous mining expertise to bear on the DFS, financing and offtake negotiation will accelerate the commercialisation of the largest lithium ore body on the ASX and yield tremendous value for AVZ shareholders.”
Chen added, “Huayou is pleased to have joined AVZ in a strategic relationship to progress the Manono lithium and tin project.
“It has the potential to deliver a premium grade product to market and we expect to work closely with AVZ to maximise the potential of the Manono project.”