RENEWABLE ENERGY AT WHAT COST? - December 2021 A closer look at the DRC's nascent lithium sector - Global Witness
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RENEWABLE ENERGY
AT WHAT COST?
A closer look at the DRC’s nascent lithium sector
December 2021
Updated January 2022
CONTENTS PART I: INTRODUCTION
PART I: INTRODUCTION ..................................... 1 The Democratic Republic of Congo is no stranger
to astonishing mineral wealth, 1 and the country
Introducing the DRC’s nascent lithium sector.. 3 appears to have found yet more of it.
PART II: Findings ................................................ 4
As yet unexploited hard-rock lithium deposits
Potential supply chain risks in the DRC’s near the town of Manono in the DRC’s south may
lithium sector..................................................... 4 be amongst the largest in the world, according to
industry experts and mining publications. 2
Companies that hold permits around Manono 4
Lithium and cobalt – for which DRC is also
The findings in more detail ............................... 5 amongst the world’s top producers 3 – are
components of electric vehicle, wind turbine and
Cong Maohuai .................................................. 12
solar panel batteries, 4 critical to renewable
The Dathcom Mining joint venture: Why energy technologies.
contract and beneficial ownership disclosure is
important for supply chain due diligence in the “We cannot expect to continue to
DRC’s lithium sector ........................................ 14 consume energy or materials as we
have done and meet the needs of all
Contract disclosure and beneficial ownership
within our planetary boundaries”
.......................................................................... 15
Kate Raworth, Doughnut Economics
Existing laws, guidance and principles for
responsible lithium production should be Global lithium demand could increase by 40
applied ............................................................. 16 times by 2040 (see IEA figures, graph 1), 5 and
demand for other battery metals that may be
Why beneficial ownership disclosures are
used in the energy transition, like cobalt, nickel,
important ......................................................... 17
manganese and rare earth elements (REE) is also
Respect human rights and the environment .. 18 set to exponentially rise (see graph 2).
Recommendations ........................................... 18 The need for ecological transition of our
economic activities has never been more critical. 6
Recommendation: Human and environmental The 2021 Intergovernmental Panel on Climate
risks of lithium extraction and trade, including Change (IPCC) report concluded that it is
in supply chains ............................................... 19 unequivocal that human influence has warmed
Recommendation: Contract, payment and the atmosphere, ocean and land, and that
beneficial ownership transparency ................ 19 human-induced climate change is already
affecting many weather and climate extremes in
Conclusion ........................................................ 20
every region across the globe. 7
Annex 1............................................................. 22 And companies throughout the supply chains of
battery metals, including investors and
Annex 2............................................................. 24
financiers, should have the policies and practices
Endnotes .......................................................... 25 in place to ensure that the transition is not
underpinned by predatory and harmful economic
and social models and – perhaps the biggest
irony of all – environmental harms, from
extraction until end-of-life of the exploited
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 1Fig. 1: IEA Figures, Total Lithium Demand By Sector and Scenario
metals. 8 While the European Union and China allow for end-of-life lithium reuse 13 and recycling,
have proposed laws making carmakers for example. 14 And, unless we change them, most
responsible for recycling batteries, 9 no country current models of mining for minerals needed for
yet legally requires companies to publicly report batteries for the energy transition will worsen the
on their lithium supply chains. inequalities of the decarbonization divide, for
example leaving people living in mining areas in
So as not to further abuses linked to the world’s
energy poverty themselves. 15
already troubled natural resources, Global
Witness believes that current and future Global Witness has conducted this analysis
investors, banks and companies that investigating potential risks linked to the DRC’s
future lithium supply chains. We set out here
trade 10 or use the DRC’s lithium have a
what we found so that companies, investors, the
responsibility to ensure that the lithium they
DRC and home state governments can take steps
invest in, buy, use or trade has been sourced
to address these now, before the production of
responsibly, according to principles that avoid
the DRC’s lithium begins.
causing, contributing to or being linked to human
rights abuses, corruption and environmental Using the Organisation for Economic Cooperation
harm. 11 and Development (OECD) international guidance
on conducting Due Diligence for Responsible
In addition, we cannot expect to continue to
Supply Chains of Minerals from Conflict-Affected
consume energy or materials as we have done
and High-Risk Areas (the OECD Guidance) as a
and meet the needs of all within our planetary
basis, this briefing outlines potential risks linked
boundaries. 12 As such, in addition to the global
to the DRC’s future lithium production, including
need to reduce consumption particularly in the
lack of transparency around payments, contracts
global north and increase circularity, companies
and beneficial ownership, and environmental and
using the DRC’s lithium in manufacturing and
human rights risks. 16 Under this framework,
products must begin to do so in ways that will
companies must identify and address actual or
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 2Fig. 2: IEA Figures, Growth in Demand for Selected Minerals for Clean Energy Technologies by Scenario potential risks in order to prevent or mitigate Introducing the DRC’s nascent adverse impacts associated with their activities lithium sector or relationships. Following this framework can In southern DRC, three international companies support responsible, low-impact and transparent have announced their intention to explore for or lithium trading and sourcing efforts that can produce lithium (see box: “Companies that hold genuinely benefit people in the DRC. permits around Manono”). Their mining Congolese laws, as well as international laws and concessions, some of which may begin producing principles on mineral production and supply as early as 2023 according to company chains, that apply to lithium, do exist, although information, are concentrated close to the town they are imperfect (see section below, “Existing of Manono. laws, guidance and principles for responsible Manono, a town of an estimated 120,000 lithium production should be applied”). If applied inhabitants 17 living mainly from local, small-scale robustly and in full, they should mitigate risk of agriculture and some small-scale or artisanal the DRC’s lithium sector contributing – financially mining, 18 sits alongside lithium and other mineral or in practice – to human rights abuses, deposits in the DRC’s Tanganyika province. 19 environmental harms or corruption. Local residents report that the town is without If these risks are mitigated, chances improve for access to a reliable electricity supply, and that its the DRC’s lithium production to make an inhabitants’ current source of drinking water is important contribution to advancing responsible locally-dug ground-water wells. 20 The population renewable energy alternatives to climate mainly generates income from small-scale devasting fossil-fuel sources, while also ensuring activities, including artisanal tin and tantalum protections of local communities and the local mining and agriculture in the fields around environment. Manono and its wider territory. 21 GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 3
“We hope the lithium will pay for something like > Finding 2. Involvement of possible politically
development in our town”, one Manono exposed persons (PEPs) in the DRC’s lithium
inhabitant told Global Witness in the research for sector, non-publicly disclosed beneficial
this brief. The Archbishop of Lubumbashi, the ownership information and the potential for
regional capital around 700km south of Manono, consolidation of control of lithium concessions
and their eventual lithium supply into a small
recently told the Congolese press that, “it is
number of hands with the existence of
imperative, indispensable, legitimate and urgent
company ownership links (see Annex 2);
that the population of Manono begins to feel the
positive effects of the exploitation of its riches.”22 > Finding 3. Undisclosed or partially-disclosed
contracts and payments linked to future
The mineral’s potential to do so is there. Roche lithium production.
Dure, one of the larger lithium-bearing rock
bodies near to Manono town, holds an estimated Companies that hold permits around
400 million tonnes of lithium according to AVZ Manono
Minerals Limited (AVZ), 23 the company that, as While dozens of companies hold mining permits
described in AVZ’s financial report of 30 around Manono (see Annex 1), as of September
September 2021, now holds 75 percent of the 2021, three companies had made public
Manono Lithium and Tin project, and 100 percent announcements about planned exploration,
of the Manono Extension project, two of the drilling or production of lithium at mining
lithium-bearing concessions. 24 concessions in the area.
PART II: FINDINGS These were:
Potential supply chain risks in the Australian-listed AVZ Minerals Limited,
DRC’s lithium sector heading up the Manono Lithium and Tin
Global Witness conducted a preliminary desk- project and the Manono Extension project;25
based review of publicly-available company Critical Resources Limited (renamed since
registration and contract documents, company June 2021, prior to which called Force
reports and social media posts, and has Commodities Ltd)26, also Australian-listed,
conducted 22 interviews with mining authorities relating to the Kitolo-Katumba and Kanukua
and experts, civil society members and also with lithium projects 27, and;
inhabitants of Tanganyika and Haut-Lomami (the Canada and Frankfurt-listed Tantalex
provinces the Global Witness mining concession Resources, relating to the Bucknell Lithium
sample covered). We focused on a sample block and Manono-Kitotolo Lithium Tailings
of 51 mining concessions (the majority of which projects. 28
were still in research phase) situated around
Dozens of other companies also hold mining
Manono town and a distance of approximately
research permits around the apparent lithium
150 kilometres south-west of the town (see Annex
deposit, according to publicly available
1 and Map 1 ). Global Witness identified potential information on the DRC’s mining register.29
lithium supply chain risks linked to: Some of these research permits may become
eventual mining permits for lithium. 30 The
> Finding 1. A lack of detailed, publicly-
recommendations in this brief are aimed at
available information about the environmental
any company producing or planning to
risks of lithium mining, in particular of hard-
produce or explore for the DRC’s lithium and
rock mining, and an apparent low level of
their investors, not only the three companies
community awareness of these potential
that have already publicly declared their
negative impacts;
intention to explore, drill or produce.
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 4AVZ aims to begin lithium production in lithium mining or how the mines might affect the
2023.31 The company counts Yibin Tianyi lives of people living in the mining area, or on the
Lithium Industry Co Ltd, Huayou International impact upon poverty and development more
Mining (HongKong) Limited and BNP Paribas broadly in the DRC.
Nominees Pty Ltd ACF Clearstream amongst
its top three shareholders, as of September These are critical issues for consideration ahead
2021. 32 AVZ has already lined up three off-take of lithium production, and companies must
agreements, 33 including with Shenzhen Chengxin meaningfully consult with locally-impacted
Lithium Group Co. 34and Yibin Tianyi Lithium communities and disclose potential
Industry Co., Ltd, a leading global battery environmental and social impacts, as required by
materials producer that is in the supply chain of Congolese law (see below) and detailed by the
Contemporary Amperex Technology (CATL), the OECD Guidance and IFC Performance
world’s largest lithium-ion battery maker. 35 Standards. 39 These disclosures should be central
to investors’, financiers’ and manufacturers’ due
Global Witness notes that, on 29 October 2021, in
diligence checks and risk assessments of
its Activities Report for the Quarter Ending 30
Manono’s lithium supply, 40 and be a major point
September 2020, AVZ announced that CATH
of attention for the Congolese government.
Energy Technologies, a company partly owned by
CATL (see above) will pay US$240 million for a “24 A 2014 DRC Ministerial Decree setting out the
percent equity interest in the Manono Project” rules and procedural mechanisms for
and a “pro rata portion of development capital environmental protection requires companies
with the transaction in totality contributing more working with the DRC’s natural resources to
than US$400 million, subject to the final project undertake an environmental and social impact
capital being verified”. 36 assessment that can be consulted by the public
on request. 41 Further, Articles 450 and 451 of the
Critical Resources Limited has not announced a
rules accompanying the Mining Code require that
production date, although the company began
companies undertake an Environmental and
lithium drilling in 2018. 37
Social Impact Assessment (ESIA), and a plan for
Tantalex began drilling at one of its concessions Environmental and Social Management, 42 while
in August 2021, and has not yet announced a article 25 octies requires the Cellule Technique de
lithium production date. 38 Coordination et de Planification Miniere (CTCPM),
a government agency, to publish a synthesis of
The findings in more detail ESIAs on its website. 43 Companies’ obligations
> Finding 1: A lack of detailed, publicly- include dialoguing with the community to explain
available information about the environmental the positive and negative impacts of mining in
risks of lithium mining, in particular hard-rock their area, answering questions and concerns
mining, and an apparent low level of that they may have, and communicating in
community awareness of these potential writing to the local administration, authorities
negative impacts and civil society a summary of the ESIA. 44
Lithium market and investor discussion forums In its 2020 annual report to investors, AVZ stated
have been buzzing with news about the DRC’s that Dathcom Mining, a joint-venture company
lithium deposits, their size and quality and, of which holds 100 percent of the Manono Project
course, speculation about company share prices. license, 45 commissioned a full ESIA “on the
However, relatively little online discussion Manono Lithium and Tin Project with the purposes
appears to have focused on detailed of baselining the biodiversity of the proposed mine
environmental considerations of the DRC’s activity areas and to conduct stakeholder
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 5consultations with the local communities to begin work on formulating its ESG commitments for the
sensitising them to the upcoming economic project”. Finally the company noted that
activity and to listen to what their views and adoption and implementation of its ESG
requirements of Dathcom would be.” 46 On 18 commitments were contingent upon government
August 2021, the Environmental and Social approval of its Definitive Feasibility Study,
Impact Assessment for the Manono project was granting of a mining license, granting of rights to
signed off by the Direction de Protection de rehabilitate a nearby hydro-electric power
l’Environement Minier (DPEM) department of the station, the final investment decision and project
DRC’s Ministry of Mines. 47 finance. The company noted that Dathcom has
not yet been awarded an Exploration Permit by
AVZ’s feasibility study makes several
the Congolese government.
environmental commitments, 48 and the company
also provides a greenhouse gas assessment on its In its public statements and feasibility study, AVZ
website. 49 Detailed plans about wastewater states that it has engaged with the local
treatment, hazardous material activity and community, plans to put a Social Development
management of air, water, land and groundwater Plan in place and that the company plans to build
pollution is not available on the AVZ website, local infrastructure, including hospitals and
however. 50 A civil society representative told schools. 53 The company also publicly states that,
Global Witness that they had sought to review a via Dathcom Mining SAS, it has taken fully
copy of AVZ’s ESIA but had been unable to obtain auditable and transparent notes of meetings with
a copy. 51 stakeholders in Manono. 54 Global Witness
requested copies of these notes from AVZ, but did
Global Witness wrote to AVZ noting that copies of
not receive a direct response to this request.
AVZ’s ESIA were not yet available on the company
website, including to Congolese civil society, Although members of the community interviewed
which is in breach of Congolese law, per Article 25 by Global Witness often expressed hope that the
octies of Décret N° 038/2003 du 26 mars 2003 mining companies will bring jobs and improve
portant règlement minier tel que modifié et infrastructure in the area, they appear to have
complété par le décret N° 18/024 d 08 juin 2018, a understood information or indications received
statement to which AVZ did not directly respond. from, or apparently on behalf of, AVZ and other
Global Witness also requested a copy of the ESIA companies operating in the region so far in
for the Manono project, but did not receive a copy varying ways, or do not have a clear, shared
from AVZ. A list of the environmental planning understanding of the companies’ commitments.
documents provided by AVZ to Global Witness is
An individual interviewed by Global Witness who
included in endnotes. 52 AVZ told Global Witness it
had participated in several meetings between, in
was committed to developing leading
his words ”AVZ” and “the community” confirmed
environmental, social and governance practises
that some discussions had taken place, but said
to “support sustainable development” and to
that as far as they knew, the company had not
“leave lasting socio-economic benefits”. AVZ also
issued any written copies of its commitments to
stated, in response to Global Witness’ request for
the community, either environmental or social. 55
a copy of the ESIA, that “all work carried out by
In its response to Global Witness, AVZ noted that
AVZ to date in relation to the Manono Project has
mining companies are required by law to put
been exploratory in nature and to determine
aside a percentage of revenue for community
whether a viable project exists”.
development and support (locally called a
The company went on to note that AVZ was “cahier de charge”), and that it had registered the
cognisant of its ESG obligations and “has begun AVZ Foundation to this end, which it anticipated
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 6would be run by a committee of local people
Fig. 3: Map of Mining Concessions around
under a “transparent set of Articles of Manono, DRC
Association” and that committee members would
be rotated on a regular basis to “ensure parity
with all stakeholders”. Additional information
provided by AVZ about environmental
management and socio-economic development,
including about AVZ and Dathcom’s due diligence
management systems, can be found in endnote. 56
Local media reporting in weekly newspaper Le
Palmier reported that, according to locals,
Dathcom and AVZ had already started
“clandestine” lithium production at Manono. 57
Global Witness has no evidence to suggest this
claim of clandestine production could be true,
and includes it here only to demonstrate degrees
of confusion and uncertainty about mining
activities and their impacts. In its response to
Global Witness, AVZ categorically stated that
there has been no lithium production at the resource is confirmed, Tantalex will endeavour to
Manono Project to date and “[a]ny reporting that complete the Feasibility Studies which would
lithium production has commenced at Manono is detail potential production scenarios and
incorrect as we are not at this stage of determine impacts on the environment and the
development”. AVZ said that it had completed communities (full ESIA studies). These are
“drilling campaigns” and had shipped a 13-tonne standard process in any project definition
bulk sample to an Australian laboratory for program and in any country to which Tantalex
metallurgical test work, the results for which will strictly abide by.”
have been publicly announced.
The company pointed out that Tantalex was “still
Global Witness was unable to locate publicly in the stages of defining if there is a resource and
available online copies of an ESIA conducted, or until then, it would not be in the interest of any of
plans for a future ESIA, by Tantalex 58 or Critical our shareholders, community stakeholders and
Resources Limited. Two people from the partners to raise any level of expectation on
community told Global Witness that they were future production and/or potential economic
unaware of any community consultations by benefits to the community. Nonetheless, we have
Tantalex, although another individual said that already held meetings with local administrators
they had participated in a meeting organised by and community stakeholders who are all very
Tantalex, in which the company told local aware and supportive of our current activities in
cooperatives engaged in artisanal mining in the the region.” Regarding its application of OECD
area to leave and return to their officially Guidance, Tantalex stated that it “does plan to
designated artisanal mining areas. 59 apply the policies and procedures contained
In response to questions about ESIA activities, within the OECD Guidance to our potential
Tantalex told Global Witness that the company lithium operations although there is absolutely
was at “the very beginning of its exploration no indication provided to Tantalex that
activities in the DRC”60 and that “[o]nce a demonstrates that the Manono region is a
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 7conflict-affected and high risk area as per the to state that he had first met President Kabila in
definition of the OECD.” For further discussion of 2007, when serving as an interpreter for Min Gou
the OECD Guidance, see below, “Existing laws, Wei, and that he had met Mr Kabila as a
guidance and principles for responsible lithium representative of the Groupement des
production should be applied”. enterprises chinoises (GREC), and that he was
also received “a few times” by President Kabila in
Critical Resources did not reply to Global Witness’
his capacity as President of the Chinese Chamber
request for information or comment.
of Commerce of Katanga, and his “similar role
> Finding 2: Involvement possible politically with the Association of Overseas Chinese of the
exposed persons in the DRC’s lithium sector, Congo”. Cong Maohuai went on to say that these
non-public beneficial ownership information were “normal, open and transparent discussions”
and the potential for consolidation of control for “mutual economic interests of many different
of lithium concessions and eventual lithium businesses” and that at “no time” was he
supply into a small number of hands with the engaged in an advisory role or sought improper
existence of company ownership links
influence on his own or any other person or
Global Witness analysed publicly available entity’s behalf. Regarding Mr Zoe Kabila, Cong
information on the DRC’s company registry 61 and Maohaui stated that the two had met in February
in its Official Government Gazette and found that 2020 but that, as AVZ had taken over as majority
a small number of companies and people, an shareholder Manono project, Cong Maohuai had
individual reported to have been an advisor to suggested Governor Kabila contact AVZ directly.
the former President, likely qualify him as a Cong Maohua also told Global Witness that he
politically exposed person (PEPs), currently or in found the assertion that he was a PEP to be
the past held, partly-held or were involved with at confusing, in line with OECD and FATF definitions
least 17 of the mining concessions along the of the term (and specifically FATF
lithium deposits (see Annex 2). recommendations 12 and 22, that define a PEP as
an “individual who is or have been entrusted with
These included a serving Minister, Guy Loando
a prominent public function, for example Heads
Mboyo, 62 and Cong Maohuai, reportedly a
of State or of government, senior politicians,
Chinese national, sometimes known as Cong Mao
senior government, judicial or military officials,
Huai, Simon Cong and Simon Cong Mao amongst
senior executives or state-owned corporation,
other names 63 (see box: Cong Maohuai, below),
important political party officials”.) Cong
an individual reported as close to former DRC
Maohuai went on to state that he is not a PEP,
President Joseph Kabila Kabange and his
holds no government position and does not fulfill
younger brother Zoe Kabila, and alleged to have
any prominent public function. Rather, that he is
been an advisor to the former President. 64 Zoe
a “private businessperson” and although had met
Kabila was governor of Haut-Lomai province, the
PEPs, did not do business with them to the best
location of some of the lithium deposits, until
of his knowledge.
May 2021. 65
La Congolaise d'exploitation miniere SA
Cong Maohui told Global Witness that it is not
(Cominière), a Congolese state-owned company,
true that he has been advisor to the former
or the company’s Director General Athanase
President, Joseph Kabila Kabange, or his younger
Mwamba Misao, were linked to 13 of the
brother, Zoe Kabila. He stated that he has met
concessions analysed by Global Witness. 66
both men, but that he has no business
relationship with either, and has “never served as Guy Loando Mboyo, 67 Minister of State in charge
an advisor to either man.” Cong Maohuai went on of Regional Planning since April 2021, or his wife,
Linda Déborah (“Bobo Elite”), 68 were linked to
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 8two of the companies that held concessions in should be addressed directly to the company.
the Global Witness sample. 69 Loando Mboyo was Finally, the Minister noted, with reference to AVZ,
also a non-executive director in AVZ between 21 that as an Australian publicly listed company
August 2017 and 1 May 2019 and held 40,000,000 regulated by the Australian stock exchange (ASX),
shares in the company at his resignation. 70 there was ample guarantee that durable lithium
According to AVZ’s 2 May 2019 Board Update, production would take place, with proper respect
Loando Mboyo stepped down from AVZ after for social, ethical and environmental concerns,
being elected as a Senator, as his “new position is and for the benefit of Congolese citizens.
constitutionally incompatible with a Directorship
Minister Loando also noted that he was not
of a public company”. 71 In its response to Global
currently a shareholder in HongKong Excellen Co.
Witness, AVZ stated that they wrote to Loando
Mining Limited, involvement in which he
Mboyo on 1 April 2019 requesting that he resign
renounced on 3 April 2019, or in HongKong Yisen
from his position, following his pending
Investment Congo SARL, involvement in which he
appointment as Senator due to conflict of
renounced on 1 March 2019, and that he is not
interest concerns. They went on to say that
currently director of a copper mine at Musoshi,
Mboyo agreed and that he stepped down from
although he had been an advisor to a company
the company on 1 May 2019. At the time of
called Societe d’Exploitation Miniere de Musoshi
writing, Mboyo holds shares in at least two other
SA (SEM SA), from which he had stood down by
mining companies, according to the most up to
letter, on 29 April 2019.
date information on the Congolese company
registry. 72 In addition, the Minister noted that development
of the DRC’s abundant natural resources and
Global Witness wrote to Guy Loando Mboyo, who
protection of the environment required
requested more time to respond to Global
considerable financial means, which could only
Witness’ opportunity to comment, citing his
be obtained via responsible international and
heavy duties as Minister and current internal and
foreign investment and that the people of the
foreign travel, in October 2021. Mr Loando Mboyo
DRC, and their elected representatives and civil
provided a fuller response to Global Witness after
servants, had the power to determine the
the deadline for comment had passed, in an 8
modalities of the related national development
page letter. In his first and preliminary response
program. It was for these reasons, the Minister
to our invitation to comment, Mr. Loando Mboyo,
noted, that he no longer practised law (although
stated that in his view, after a preliminary
he did remain founder and owner of his law firm),
examination of the allegations, the majority of
that he and his wife had created the Widal
the information was incorrect according to his
Foundation and that he had decided to present
own recollections.
himself as an independent candidate for election.
In his later, more extensive reply, Minister Loando For these same reasons, he was elected to the
Mboyo went on to note that between 2017 and 1 Senate and he was nominated Minister. The
May 2019 he had exercised the function of non- Minister respectfully disagreed with Global
executive director at AVZ, and that in this role he Witness’ opinion that he was a PEP. A summary of
had no kind of responsibility in the daily running the remainder of the Minister’s response is
of the company, and that he had stepped down contained in this endnote.73
from AVZ board for the reasons given by the
Global Witness attempted to contact Bobo Elite
company (above), and in line with Congolese law
Linda Déborah via multiple email channels and
and the rules of the Congolese Senate. Minister
did not receive any initial response. 74 Global
Mboyo went on to state that he could not
Witness additionally couriered a letter to Bobo
comment on matters related to AVZ, which
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 9Elite Linda Déborah giving an opportunity to 2018 Annual Report provides that, as of 30 June
comment on the material about her in this report, 2018, Dathomir held 240,000,000 shares (12.71
to which she replied. In her reply, couriered to percent) interest in AVZ and that further detail of
Global Witness, Bobo Elite Linda Déborah stated shareholders is contained in their 2018 annual
that she had difficulty understanding what report.
relationship a report about lithium had with her,
Cong Maohua confirmed with Global Witness that
but that she provided a response due to her belief
is manager of Dathomir Mining Resources SARL,
in total transparency and social responsibility.
and that on May 23 2017, Dathomir Mining
Bobo Elite Linda Déborah went on to state that
Resources SARL sold 60 percent of its share
she vigorously contested all allegations of fact
capital of Dathcom Mining SAS to AVZ Minerals
and law that Global Witness had put to her. She
Ltd and that, as principal shareholder, AVZ has
noted that, according to the legal advice
taken on the day-to-day management of
provided to her, public information on the
Dathcom Mining SAS’ operations. Cong Maohuai
internet about companies in the DRC was
added that, since 2017 he had been a non-
uniquely destined to inform the public, and that
controlling partner of Dathomir Mining Resources
official information about Congolese companies
SARL, which had limited his involvement. Cong
and their activities was that which was held by
Maohuai told Global Witness that Dathcom
the relevant competent bodies in DRC. Please
Mining SAS was established on 24 October 2016,
also see Bobo Elite Linda Déborah’s further
by Dathomir Mining Resources SARL and
response, below.
Cominière SA. He added that, during the five-
Six of the concessions in the Global Witness month period between the establishment of the
sample, including the AVZ Manono project joint venture and the purchase of the majority of
(PR13359), and one of the Tantalex concessions shares by AVZ, he had served in his role as a
(PR13698), are or had been owned, part-owned or representative of Dathomir Mining Resources
had been acquired from companies associated SARL and briefly as President of Dathcom Mining
with Cong Maohuai, 75 (see also box: Cong SAS.
Maohuai below).
AVZ told Global Witness that, prior to investing in
Cong Maohuai is also manager of Dathomir the Manono Project, the company had “engaged
Mining Resources Sarl, which was one of AVZ’s in due diligence of relevant corporations and
joint venture partners in Dathcom Mining SAS individuals” and that this “included independent
until September 2021. Dathomir Mining inquiries of local corporate regulators”. AVZ
Resources Sarl is wholly owned by Dathomir stated that their due diligence did not “reveal any
International Corp, represented by Cong. 76 inappropriate links between individuals involved
Dathomir Mining Resources Sarl was recorded as in the Manono Project and Joseph Kabila
AVZ’s largest shareholder in the company’s 2018 Kabange nor any members of his family”. AVZ
and 2017 Annual Reports. 77 One year later, in added that “similarly, no concerns were
AVZ’s 2019 Annual report, Dathomir Mining identified to Cong Maohuai’s involvement in the
Resources no longer appeared amongst AVZ’s top Manono Project”.
20 shareholders.
The business links between Cong and Mboyo
In their response to our request for comment for appear to be long-standing. From 21 August 2017,
this briefing, AVZ told Global Witness that Mboyo was an executive director of AVZ, during
Dathomir acquired its shareholding in AVZ as part the same period that Dathomir Mining Resources,
of the consideration paid by AVZ for its 60 percent represented by Cong, was AVZ’s largest
interest in the Manono Project, and that “our shareholder. 78 Cong, representing Lucky
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 10Resources Holding Company Limited and Mboyo, In addition, Mboyo’s wife Linda Bobo Elite may
representing Summit Reward Investment have been associated with Cong Maohuai via a
Limited, were parties to a 2017 cooperation company called Kibali-Ituri Resources sarl. An
agreement with Huayou International Mining, a unsigned copy of what appears to be a 2016
wholly-owned subsidiary of Zhejiang Huayou company incorporation document, available
Cobalt Co., Ltd, according to information on the online on the former website of the Congolese
Huayou website. 79 Cong has also been listed as a company registry, 84 lists Linda Bobo Elite as a
director in the Societe Miniere d’Exploitation de party to the company contract alongside an
Musoshi SA (SEM) alongside Mboyo. 80 individual called Min Guo Wei, a reported
economic advisor to the Congolese presidency
On the website of the Minister’s Widal
and prolific business owner in the DRC. 85 Global
Foundation, Mboyo describes Cong as “humble,
Witness has been unable to verify whether the
rempli de sagesse et est un visionnaire (humble,
cited company ever came into being, or if this
full of wisdom and visionary). 81 Cong Maohuai
document was formalised or signed.
told Global Witness that Guy Loando Mboyo had
founded a law firm and had served as a lawyer Cong Maohuai and Min Guo Wei also share
representing him and his businesses, although multiple business connections. 86 Cong Maohuai
that since 2019 and Guy Loando Mboyo’s election told Global Witness that he had known Min Guo
to the Senate, Guy Loando Mboyo stopped Wei, a retired mining expert, since 2007, had hired
“personally representing me and my businesses”. Min Guo Wei to work for him and that Min Guo
Wei was “involved” in Cong Maohuai’s work with
In response to questions for this report, Huayou
Dathomir International. Cong Maohuai stated
told Global Witness that in August 2017, Huayou
that he had “no reason to believe that he [Min
Cobalt, through its wholly-owned subsidiary
Guo Wei] has a business relationship with former
Huayou International Mining (Hong Kong) Ltd.
President Kabila,” although it was Cong
(hereinafter referred to as "Huayou International
Maohuai’s understanding that Min Guo Wei had
Mining") subscribed for additional shares of AVZ,
met the former president. Cong Maohuai also told
and that Huayou Cobalt “has hired relevant
Global Witness that, according to his
intermediaries agency to conduct due diligence
understanding of the term, Min Guo Wei was not a
on the Australian listed company AVZ, DRC’s
PEP. Cong said that that he shared the view that
Manono project and its mining rights in
PEP involvement should be limited to “legitimate
accordance with the recognized business
enforcement of the DRC law” and that “award of
standards and ethics of the industry. Huayou
access and the related contracts” should be
Cobalt is only a minority shareholder of AVZ, and
disclosed in the manner required under the DRC
has not actually participated in the management
law, and that “that is the approach which I take in
and operation of the company and the Manono
my business”.
project.”82
Global Witness asked Cominière and its Director
It added that “when Huayou Cobalt conducted
General Athanase Mwamba Misao, Cong Maohuai,
the above two overseas investments and
Min Guo Wei and Bobo Elite Linda Déborah about
mergers, it did not find information from any
these matters.
public channels, media news and other
organizations that Cong Maohuai and Guy In her response to Global Witness, Bobo Elite
Loando Mboyo are politically exposed person Linda Déborah told Global Witness that she was
(PEPs)”. Information supplied by Huayou about founder and administrator of Winners Group Sarl,
its OECD due diligence is provided in this which in January 2016, in collaboration with an
endnote. 83 entity known as “Dathomir International Corp”,
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 11domiciled in the Seychelles and represented by suggest he is a politically exposed person, was
Min Guo Wei, created Kibali-Ituri Resources Sarl, the Chairman of the Katanga Chinese Chamber of
of which the social capital was divided 10 percent Commerce and the Congo Overseas Chinese
and 90 percent respectively. Bobo Elite Linda Association, 89 Cong owns or has established an
Déborah stated that she was not a specialist in array of mining companies across the DRC. 90
law and as such had no comment on Min Guo
Cong Maohuai told Global Witness that he had
Wei’s or Cong Maohuai ’s status as a PEP,
served as president to the Katanga Chinese
although noted that according to judicial advice
Chamber of Commerce between 2008 and 2015,
she had received, Global Witness’ assertions
and had been serving as president of the Congo
about the status of these individuals were not
Overseas Chinese Association since 2015. He also
accurate. Bobo Elite Linda Déborah stated that
added that he was pleased to have contributed to
following a decision on 3 or 4 August 2016, dating
the growth of the economy of the DRC, through
from 29 July 2016, Kibali-Ituri Resources Sarl
involvement in these non-governmental
changed its name to Dathomir Mining Resources
organizations.
Sarl and at the same moment, Min Guo Wei was
replaced by Cong Maohuai as director general. According to the Congolese business registry,
Bobo Elite Linda Déborah contested all the Cong Maohuai also presently owns MCC
affirmations of fact contained in the Boatman Resources Sarl, a company which holds two
Capital Research report, or any of its subsidiaries. mining concessions near to Manono, in the Global
Finally, Bobo Elite Linda Déborah stated that as a Witness sample. 91 Cong Maohuai told Global
Congolese citizen, she was fully committed to Witness that although it was true that he had
and had, to her knowledge, fully respected been a shareholder in MCC Resources SARL, on or
Congolese law and all international agreements about March 10 2021, he had transferred all his
or codes applied in her country. shares to another person, who he was not
currently authorized to identify.
When Global Witness wrote to Cong Maohuai
inviting his comment on the matters in this
Mineral Mining Resources (MMR), 92 a company
briefing, he requested more time to respond.
that is part of the Tanzanian-founded Vinmart
Global Witness gave Cong Maohuai an additional
Group, 93 manages, owns or part-owns a further
period in which to respond and he did respond
eight mining concessions in the Global Witness
within this agreed period. Global Witness did not
sample. 94 Two of these concessions were the
become aware of this response until notified by
subject of a collaboration with Critical Resources.
Cong Maohuai on 17 December 2021. 87 Min Guo
MMR told Global Witness that no joint venture
Wei did not respond to Global Witness’ invitation
was incorporated and the collaboration ceased in
to respond to or comment on the matters raised
2020. 95 MMR added that the company was not
in this briefing.
engaged in lithium related mining activities. MMR
Global Witness sent a letter to Cominière also stated that it “advocates compliance with
addressed to Athanase Mwamba Misao to give OECD guidelines […] All of MMR’s mineral
the company and him personally an opportunity concentrate production is 100 percent ICGLR-
to comment. No response was received from certified conflict free. Critical Resources did not
either of them. reply to Global Witness’ request for information
or comment.
Cong Maohuai Tantalex or SandStone Worldwide Ltd (which is a
Reported to have been an advisor to the former wholly-owned subsidiary of Tantalex) owned
President, Joseph Kabila, 88 which if true would shares in companies controlling a further six
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 12concessions. 96 In 2017 SandStone Worldwide Ltd addition, information about mining contracts,
was listed in the Bahamas. 97 their annexes and riders should be published in
the official Journal and on the website of the
Three other concessions in the Global Witness
Ministry of Mines within sixty days of their
sample were held by Crown Mining, a company
signature. 101 It is also a requirement for EITI
that was established in the DRC in 2012 by Ahmed
implementing countries for contracts or licenses
Tajideen. 98 In 2017 Global Witness reported that
awarded after January 1, 2021 to be published by
Ahmed Tajideen was the boss and owner of the
state authorities. 102
Congo Futur conglomerate, which has been
sanctions-listed since 2010 by the US Treasury. 99 The publicly available documents were a 2016
Ahmed Tajideen himself was not sanctioned. 100 At proces-verbal for a joint venture between state-
its 12 December 2017 AGM, Crown Mining owned Cominière SA and Dathomir Mining
replaced Tajideen with Kamal Srour as Managing Resources sarl, creating Dathcom Mining (see
Partner of the company, according to official box), and a 2010 contract for lithium mining
documents reviewed by Global Witness. In its concessions around Manono, 103 which has since
response to Global Witness Crown Mining told been withdrawn by the Congolese state in
Global Witness that Kamal Srour was the sole contested circumstances. 104
“associate statutory manager” of Crown Mining
In addition, not all payments related to the
and that Ahmed Tajeddine (their spelling) “left
lithium concessions that were made by
the company for his own reasons”, and that it had
companies appear to have been disclosed by the
“pleased the company members” to replace
Congolese authorities, as required by Congolese
Ahmed Tajeddine with Kamal Srour. The
law and the EITI standard, which Congo is bound
response also stated that there was no link,
to follow. 105
neither “close nor distant” between Ahmed
Tajeddine and Kamal Srour. Crown Mining went In the course of this research, Global Witness
on the say that they had not established a due identified a sample of six contracts for deals
diligence report for lithium mining because no linked to Manono’s lithium projects, for which the
industrial or artisanal exploitation of lithium was full text and payment details were not available,
taking place on their concession. Crown Mining either on the EITI website, 106 or on the relevant
stated that they produced an annual due Congolese ministry page. 107 These are:
diligence report for the coltan and cassiterite
mining that took place on their three Manono > The terms of an initial 2016 contract sale
concessions, and that this report was available between AVZ and Medidoc FZE, a private
Dubai-based company, in which AVZ secured
on the Crown Mining website.
the rights to two of its lithium concessions at
> Finding 3: Undisclosed or partially- Manono (PR4029 and PR4030). According to
disclosed contracts and payments linked to AVZ literature, the company paid US$200,000
future lithium production in cash and issued 30,000,000 shares to
Medidoc FZE in 2016, and a further 20,000,000
Global Witness also found that only one mining after 30 April 2017, to secure the concession. 108
contract and a verbal agreement (proces-verbal) In its response to Global Witness, AVZ
document for the lithium projects included in our confirmed that AVZ has a 100 percent interest
sample were publicly available online in full, even in both PR4029 and PR4030, and that “the
though publication by Congolese authorities of terms of acquisition of this interest are
mining contracts and information about the real summarised” in their 19 September 2016 and
31 October 2016 ASX announcements. AVZ told
shareholders of mining companies is a
Global Witness that Dr Andy Reitmeier is the
requirement of the Congolese mining code. In
100 percent owner of Medidoc FZE.
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 13> The exact terms and start date of the > A January 2018 joint venture between
Dathcom Mining SAS joint venture between Critical Resources and Mining Mineral
AVZ, Cominière and Dathomir Mining Resources (MMR) for the Kanuka Lithium
Resources. Firstly, the publicly-available project joint venture, for which the full text of
information about the date that the joint the joint venture is not publicly available. MMR
venture began is unclear. Secondly, the total told Global Witness that [t]he Joint Venture
sums paid by AVZ and to whom under the joint company was not incorporated and that
venture are also unclear (see box below: The “[w]hile Force did commence with exploration
Dathcom 2016 Joint Venture, including AVZ’s activities Force ceased with these activities in
reply to Global Witness on this point). the first half 2020 and there has since been no
further collaboration between the parties”. 113
> Detailed information about a July 2021
binding agreement between Tantalex and Unless stated above, the contracting parties
Minor Sarl 109 is not available. A Tantalex listed here did not respond to Global Witness’
company press release notes that the earn-in request for comment.
agreement allowed Tantalex up to 52 percent
of the shares in Minocom Mining SAS, the title Public disclosure of mining contracts required by
owner of PR 13698 and PR 13348 which was a Congo’s law. This information is important for
joint venture between Minor Sarl (70 percent) companies conducting risk-based checks on the
and Cominière (30 percent), for which the DRC’s lithium production and its supply chains.
terms are also not publicly available; 110 In its The lack of publicly-available information on
reply to Global Witness, Tantalex stated that,
these contracts underscores the need for
“[t]he final Deed of Agreement between TTX
companies considering or engaged in investment
SAU and Minocom SAS is being finalized and
will also be legalized in the DRC so this or trading in the DRC’s lithium sector to conduct
information will also be publicly available as proper due diligence to mitigate the risk of
per Congolese Law.” contributing to harms, including those linked to
governance and transparency.
> A July 2016 joint venture signed between
Cominière SA and SandStone Worldwide
Limited, creating United Cominière, for which
The Dathcom Mining joint venture:
Tantalex paid Cominière SA US$50,000 thirty Why contract and beneficial ownership
days after the signing of the contract and disclosure is important for supply chain
secured a 70 percent holding in the venture. 111 due diligence in the DRC’s lithium sector
In a January 2017 Tantalex technical report, The publication of a 2016 verbal commitment
the company published a screenshot of the (proces-verbal) for a joint venture creating
first page of the joint venture. Global Witness Dathcom Mining, 114 and publicly available
was unable to locate other details of the
information on the Congolese company registry,
contract available online. In its reply to Global
allows parties conducting their due diligence to
Witness, Tantalex stated that, “[s]tatutes from
UC and UMC joint ventures are notarized and compare and assess information, for example. It
legalized and I cannot see any reason why also allows interested parties conducting their
these would not be made publicly available due diligence to establish the initial ownership
through the legal system of DRC”; structure of Dathcom Mining SAS. Global Witness’
analysis looked at the timeline for the creation of
> A December 2017 joint venture between
the joint venture, and at some of the payments
Critical Resources and Cominière SA in the
Kitola Katamba Lithium project, for which the made.
full text of the joint venture are not publicly
Based on this publicly available information,
available; 112
Global Witness found that:
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 14> On 24 November 2016, the proces-verbal either of them.
committing to a joint venture called Dathcom
Mining was signed, following a preliminary
agreement reached on 23 September 2016 Contract disclosure and beneficial
between Athanase Mwamba Misao for ownership
Cominière SA and Cong Maohuai for Dathomir According to the Congolese company registry,
Mining Resources sarl; 115 Dathomir International Corporation is the sole
shareholder of Dathomir Mining Resources sarl. A
> The document creating Dathcom Mining SAS, a report by The Boatman Capital Research
joint venture, was signed on 11 January (Boatman Capital), 120 suggests that Dathomir
2019; 116 International Corporation is a Seychelles-based
> Dathcom Mining SA was registered at the company whose shareholder is Foster Services
Congolese company registry on 9 December Ltd in Belize.
2019. The online registry entry states that Corporate registration documents for Foster
Dathcom Mining SA’s operations started on the Services Limited obtained by Global Witness from
date of 15 December 2016. 117 the Belize registry, do not record beneficial
> Finally, there is an apparent discrepancy ownership information, and Global Witness had
between the amount that Dathcom Mining SA been unable to establish the ultimate beneficial
said it had paid to the Congolese state in 2019 owner of Foster Services Ltd, or of its shares in
and the amount the Congolese state said it had Dathomir International Corporation. When Global
received in 2019 from Dathcom Mining SA, as Witness contacted the Panama-based registered
submitted by each party to the EITI. 118 agent for Foster Services and asked them for this
information, the registered agent said that they
In its response to Global Witness, AVZ stated that would pass the request on to the person in
Cominière SA and Dathomir Mining Resources charge and that the letter received has been
SARL “entered into an exploration joint venture forwarded to the representative of Foster
agreement setting out their main terms and Services Ltd. for their attention. Global Witness
conditions of their cooperation with respect to did not receive any other response.
the exploration of the Manono Project” and that
“[o]n 28 November 2016, Cominière SA, AVZ and The Boatman Capital report also claims that
Dathomir entered a Binding Term Sheet whereby when Dathomir Mining Resources sarl was
AVZ agreed to acquire from Dathomir its 60 incorporated its director was Min Guo Wei, a
percent of the share capital of Dathcom, for Chinese businessman (see above), 121 who was
US$500,000, subject to carrying out its due also one of the original shareholders in
diligence”. AVZ stated that Dathcom Mining SA Sicomines, 122 a huge joint venture trade deal
was incorporated on 16 December 2016. 119 between the Congolese state and Chinese
companies. Global Witness contacted The
AVZ told Global Witness that the difference in Boatman Capital Research Group about the
payments reported may “be attributed to the allegations contained in their report. Boatman
differences in financial accounting years between Capital Research Group’s response was “no
the DRC government and Dathcom”. comment”.
Global Witness sent a letter to Cominière Because the ultimate beneficial owner of
addressed to Athanase Mwamba Misao to give Dathomir Mining Resources is not publicly
the company and him personally an opportunity disclosed, it has been unclear who has ultimately
to comment. No response was received from benefited from payments made to the company
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 15by AVZ. 123 Cong Maohuai told Global Witness that and tin supply chains that funded corruption,
Foster Services Ltd is the shareholder of conflict and human and environmental abuse. 127
Dathomir International Corporation, and that And in August 2020 we revealed how an US$800
Foster Services holds these shares on his behalf million deal for Deziwa copper mine risked
and that, in order words, he is the ultimate leaving the country short-changed, again. 128
beneficial owner of Dathomir International
The Organisation for Economic Cooperation and
Corporation. In situations like these, the opaque
Development (OECD) has established
ownership structure can raise supply chain risks,
international guidance on conducting Due
in particular because it is unclear who was
Diligence for Responsible Supply Chains of
ultimately receiving monies for payments linked
Minerals from Conflict-Affected and High-Risk
to the company.
Areas (the OECD Guidance). 129 The OECD
AVZ told Global Witness that they had conducted Guidance, now the international standard for
an “adverse media and sanctions search” on responsible mineral supply chains from high risk
Foster Services and that it had not returned “any and conflict-affected areas, provides a detailed
negative results”. The company also told Global five-step framework for companies and investors
Witness that they had conducted an adverse to assess and address risks in any mineral supply
media and sanctions check on Min Guo Wei, but chain, including lithium.
that searches could not be performed due to the
Global Witness contends that the OECD Guidance
“common use of his name”.
is applicable given the governance, human rights
Min Guo Wei did not respond to Global Witness’ and environmental risks previously identified in
invitation to respond or comment to the matters the DRC’s minerals sector. 130
raised in this briefing.
In addition, the Chinese Due Diligence Guidelines
for Mineral Supply Chains, launched by the China
Existing laws, guidance and
Chamber of Commerce of Metals, Minerals &
principles for responsible lithium
Chemicals Importers & Exporters (CCCMC) and
production should be applied
now in its second version, 131 apply to all Chinese
The DRC’s lithium is of global geo-political
companies who are extracting or using minerals
importance. With around 345,000 tonnes of
and mineral products at any point in the supply
lithium produced globally in 2020, a figure
chain, and reflect the same risk-based supply
projected to quadruple by 2030, 124 the country’s
chain check process for minerals as the OECD
deposits could soon be in global demand. But
Guidance. 132
while world-leading mineral production is no
stranger to the DRC, neither are mining deals that The DRC does not yet legally-require companies
often been bad for the people and the producing or trading lithium to conduct OECD-
environment and been marred by corruption and standard supply chain due diligence – as it does
opaque and unaccountable supply chains. for other minerals. 133 However, Global Witness
believes that responsible companies producing,
In the past, Global Witness exposed how the
trading or investing in the DRC’s lithium should
DRC’s copper and cobalt procured through deals
apply the OECD Guidance, which applies to all
involving commodity trading giant Glencore and
minerals, 134 from the outset and investors should
its former partner Dan Gertler, since sanctioned
demand the application of this international
by the US over corruption in the DRC’s mining
standard. Furthermore, Global Witness outlines in
sector, 125 may have deprived the Congolese
the following endnote guidance that responsible
people of US$1.4 billion in revenue. 126 We have
mining companies should adhere to.
mapped out some of the DRC’s gold, tantalum
GLOBAL WITNESS DECEMBER 2021 – UPDATED JANUARY 2022 Renewable Energy At What Cost? 16You can also read
