Rio Tinto Group has held discussions with the Democratic Republic of Congo (DRC) to develop one of the world’s largest hard rock lithium deposits, reported Bloomberg.
The negotiations, which have taken place in recent weeks, revolve around the possibility of Rio Tinto transforming the Roche Dure deposit into a lithium mine, said sources familiar with the matter.
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The outcome of these talks remains uncertain as the discussions are in the early stages.
The DRC is seeking to attract Western investment to counterbalance Chinese dominance in its mining industry.
The country is also exploring a minerals-for-security deal with the US to support its fight against regional insurgencies in its eastern provinces.
The Roche Dure lithium deposit, initially identified by Australian company AVZ Minerals, has attracted interest from multiple parties.
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By GlobalDataThe deposit is estimated to hold mineral resources of 400 million tonnes at 1.65% lithium oxide, 715 parts per million (ppm) of tin and 34ppm of tantalum, as of May 2019.
Located near the Manono lithium project in south-eastern Congo, the licence is currently subject to arbitration proceedings initiated by AVZ Minerals after the DRC Government cancelled its rights and redistributed them, with the northern section going to Zijin Mining Group.
In March, AVZ Minerals announced that an International Chamber of Commerce tribunal had issued a partial award, ordering DRC’s state-owned Cominière to pay €39.1m ($42.4m) plus interest for non-compliance with emergency orders over the Manono lithium project.
Rio Tinto’s talks with the DRC on the development of the Roche Dure deposit highlight the company’s growing interest in battery metals essential for the electric vehicle industry.
The company is aiming to establish itself as a significant player in the lithium supply chain, contrasting with other mining giants such as BHP and Glencore, which have been more cautious about entering the lithium market.
Rio Tinto’s expansion strategy includes the acquisition of Arcadium Lithium for $6.7bn (£5.19bn) last year, as well as developing assets in Serbia and Argentina.
KoBold Metals, supported by investors such as Bill Gates and Jeff Bezos, has also expressed its intention to develop the deposit once legal disputes are resolved.
There is speculation that KoBold and Rio Tinto may collaborate on the mine, although both companies are also considering independent involvement, the report added.
