The Democratic Republic of the Congo has revoked a 79 block lithium exploration permit held by AVZ Minerals, deepening a high stakes dispute over control of one of the world’s most valuable lithium deposits.
The forfeiture, published by the country’s mining registry CAMI, affects permit PR 4029 located in the Manono territory of Tanganyika province. Authorities cited the company’s failure to pay annual surface rights as the legal basis for the decision, in line with the country’s mining code.
AVZ Minerals has been given 30 days to appeal the cancellation, a move that could determine whether it retains any operational presence in the region. The revoked permit forms part of the broader Manono Extension Project, which was designed to explore additional lithium rich zones surrounding the core Manono deposit.
The latest development adds to a long running dispute that has already reshaped ownership of the project. AVZ previously held rights to the main Manono lithium asset, widely regarded as one of the largest undeveloped hard rock lithium deposits globally. However, in 2023, the Congolese government revoked that permit, citing slow progress, and reassigned rights to a subsidiary of Zijin Mining.
The decision triggered a series of legal battles, with AVZ pursuing arbitration through the International Chamber of Commerce and the International Centre for Settlement of Investment Disputes. The dispute remains unresolved, with intermittent attempts at mediation failing to produce a lasting settlement.
The cancellation of the extension permit now intensifies pressure on the company, effectively narrowing its options in a region central to global lithium supply chains. Lithium is a critical mineral used in electric vehicle batteries and renewable energy storage, making control of deposits like Manono strategically significant.
At the same time, development of the Manono project is progressing under Manono Lithium SAS, a joint venture involving Zijin Mining and the state owned Cominière. The project’s first phase, backed by nearly one billion dollars in investment, is expected to begin operations in 2026, underscoring the urgency and importance of the asset in the global energy transition.
Beyond the immediate dispute, the move reflects a broader shift across Africa toward tighter control of natural resources. Governments in countries such as Ghana, Zambia and the DRC are increasingly enforcing compliance with mining regulations, including licensing conditions, local content requirements and financial obligations.
This trend, often described as resource nationalism, is aimed at ensuring that mineral wealth translates into tangible domestic benefits such as jobs, infrastructure and industrial development. However, it is also raising the risk profile for foreign investors, who face stricter regulatory scrutiny, higher compliance costs and the possibility of permit cancellations.
For mining companies, the implications are significant. Projects can face delays, increased legal exposure and uncertainty over long term ownership rights. In some cases, disputes can drag on for years, affecting financing, partnerships and overall project viability.
In the case of AVZ Minerals, the stakes are particularly high. The company has already seen its flagship project entangled in legal and political complexities, and the latest permit revocation further complicates its position.
Industry analysts say the outcome of the Manono dispute could set an important precedent for how African governments balance investor interests with national priorities in the critical minerals sector.
For now, the cancellation sends a clear message. Access to Africa’s mineral wealth is no longer guaranteed. Compliance, speed of development and alignment with national interests are becoming decisive factors.
As global demand for lithium continues to surge, the competition for control of key deposits like Manono is only expected to intensify.
