AVZ Minerals has partnered with Zhejiang Huayou Cobalt through its group company Huayou International Mining. Under the strategic agreement, AVZ Minerals will be able to draw on Huayou Cobalt Group’s experience in the DRC and Mainland China in assisting AVZ Minerals in the completion of the DFS for the Manono Lithium and Tin Project in the DRC.
Furthermore, Huayou will also be able to provide advice and assistance with respect to project financing, offtake financing, strategic services, EPCM and cost effective transport of product to final recipients.
Huayou Cobalt Group is one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with a number of established cobalt mining and processing operations within the DRC.
According to media reports, the Strategic Relationship agreement is non-binding and non-exclusive.
AVZ MD, Nigel Ferguson said that AVZ values its existing relationship with Huayou highly and this new agreement will see the two companies come even closer to advance the Manono Project.
He further added that with Huayou’s tremendous mining expertise to bear on the DFS, financing and offtake negotiation will accelerate the commercialization of the largest lithium ore body on the ASX and yield tremendous value for AVZ shareholders.
President of Huayou Cobalt Group, Hongliang Chen also expressed his excitement in the new partnership, adding that they are looking forward to advancing the progress of the Manono Lithium and Tin project.
According to Mr. Chen, the project is one of the standout development projects globally. As such, he said that it has the potential to deliver a premium grade product to market and we expect to work closely with AVZ to maximize the potential of the Manono project.