Name of the Project
Manono lithium/tin project.

Location
Democratic Republic of Congo (DRC).

Project Owner/s
AVZ Minerals in joint venture (JV) with Dathomir Mining.

Project Description
A definitive feasibility study (DFS) has confirmed the project’s outstanding metrics. The project has total ore reserves of 93-million tonnes grading 1.58% lithium oxide and 988 g/t tin.

The DFS has shown the project to be robust and viable, and envisages conventional openpit mining, producing about 700 000 t/y of high-grade lithium and 45 475 t/y of primary lithium sulphate over a 20-year mine life.

The project has a life-of-mine beyond 20 years, based on a 4.5-million-tonne-a-year operation underpinned by the ore reserves.

Potential Job Creation
Construction is expected to create 400 to 450 jobs, with 500 to 550 jobs expected to be created in the long term.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV) on a 100% basis, at a 10% discount rate, of $2.35-billion and an internal rate of return of 53.15%, with a payback of 1.5 years.

Capital Expenditure
Initial construction capital is estimated at $545.5-million, including a 10% contingency.

Planned Start/End Date
The project is expected to start construction in August 2020, subject to Covid-19.

Production is expected to start in the first quarter of 2022, subject to Covid-19.

Latest Developments
AVZ Minerals has revealed that it will boost its equity stake in the Manono lithium/tin project to 75% in a $15.5-million share sale purchase agreement.

The company will buy an additional 10% equity stake in the project from its JV partner, Dathomir Mining.

Under the agreement, AVZ has paid $500 000 to Dathomir Mining as an advance payment. The remaining $15-million will be paid at any time within 12 months of the agreement being executed, or as soon as AVZ secures a minimum of $50-million project financing.

Based on a 75% project interest, AVZ’s share of the project NPV, using a 10% discount, will increase from $616-million to $771-million.

“The recently completed definitive feasibility study clearly demonstrated our Manono project is very robust, with strong financial metrics,” AVZ MD Nigel Ferguson has said.

Key Contracts and Suppliers
GR Engineering Services (process plant); PAIE (metallurgical testwork consultants); ALS (metallurgical testwork laboratories); Coppern (high-pressure grinding rolls original-equipment manufacturer); Steinhart (ore sorting original-equipment manufacturer); Middindi Consultants (geotechnical study); RD Consultants (hydrogeology and hydrology); CSA Global (resources to reserves study and mine development); ERM (mine closure plan); CONSI (operational readiness); L&MGSPL (tail­ings storage facility); Dynamic IT (information technology systems); Infraology (technical rail due diligence); Roskill (marketing survey); Graeme Campbell and Associates (geoscience); EmiAfrica (economic- and social-impact assess­ment); FTI Consulting (financial modelling); KCS Mining (mine contractor costing); Increva (project management consultants); Nexus Bonum (ore sorting consultants); iSpatial (geographic infor­mation system mapping); and Wisedesign (hydroelectric power plant DFS).

Contact Details for Project Information
AVZ Minerals, tel + 61 8 6117 9397 or email admin@avzminerals.com.au.