Legal Brief : MANONO LITHIUM EXPLOITATION

LEGAL BRIEF: MANONO LITHIUM EXPLOITATION

Scientific Analysis of Congolese Mining Law and CAMI Jurisprudence

Aiming to ensure legal certainty for the Manono project, this brief examines title overlap disputes before the Mining Registry (CAMI) while highlighting the critical challenges of local processing and international arbitration.

I. Scientific and Doctrinal Framework of Congolese Mining Law

The exploitation of lithium deposits in Manono (Tanganyika Province) has been governed by an exceptional legal regime since the Mining Code reform via Law No. 18/001 of March 9, 2018. Under Congolese mining law, lithium is classified as a "strategic mineral substance" by Prime Ministerial Decree. This scientific and doctrinal classification substantially alters the fiscal and customs regime, raising the mining royalty rate to 10% of the gross commercial value, compared to 3.5% for base metals.

Regarding ownership, Article 71 of the Mining Code imposes a strict requirement: the granting of a Mining Permit (Permis d’Exploitation - PE) is conditional upon ceding 10% of the share capital to Congolese citizens. This public policy provision (ordre public) aims to foster a national mining bourgeoisie and integrate local capital; non-compliance triggers title forfeiture.

II. Mining Registry (CAMI) Jurisprudence and Title Disputes

The Manono case is a textbook example of the application of the priority and forfeiture principles by the Mining Registry (CAMI). CAMI's administrative jurisprudence relies on the fundamental "first-come, first-served" principle (Article 45 of the Mining Code). However, overlapping titles and permit revocations on the PR 13359 concession highlight the complex friction between mining administration and political influence.

Permit revocations—notably disputes involving the state-owned Cominière, AVZ Minerals, and Jin成 Mining—demonstrate that CAMI strictly, though sometimes contentiously, enforces lapses in title validity (such as non-payment of surface fees or failure to commence work within statutory deadlines). The Ministry of Mines' decision to split the concession or reassign exploration permits to new actors, such as KoBold Metals, aligns with a state doctrine of maximizing mining asset value, a policy validated by the jurisprudence of the Congolese Council of State.

III. International Arbitration and Legal Certainty for Investments

Due to the transnational stakes, mining litigation governance has shifted toward international arbitration. The DRC faces multiple proceedings before the International Centre for Settlement of Investment Disputes (ICSID) and the International Chamber of Commerce (ICC) in Paris.

 These arbitrations highlight the tension between the DRC’s state sovereignty to revoke rights for contractual non-performance, and the investment protection guarantees embedded in Bilateral Investment Treaties (BITs). Legal certainty is severely tested here: to attract top-tier western technological partners (US or European), the Congolese state must demonstrate strict compliance with administrative legality, avoiding indirect expropriations that could trigger international financial liability running into billions of dollars.

IV. Environmental, Societal Impacts, and Local Processing Obligations

The current Mining Code no longer tolerates the export of raw, unprocessed minerals. Article 108 bis mandates the local processing of mineral substances within the DRC. For Manono's lithium, this requires transitioning from extraction to producing concentrates or lithium carbonate on national soil, unless a temporary government exemption is granted due to energy infrastructure deficits—specifically the pending rehabilitation of the Mpiana Mwanga hydroelectric plant.

On the environmental and societal front, compliance is driven by two binding instruments:

• Environmental and Social Impact Assessment (ESIA) & Environmental and Social Management Plan (ESMP): Must be approved by the Congolese Environmental Agency (ACE) before any work begins.
• Community Cahier des Charges (MOU): Negotiated with local communities to fund basic infrastructure (schools, hospitals, roads) via a mandatory minimum 0,3% revenue dotation, formalizing corporate social responsibility (CSR).

The Manono lithium case illustrates the paradoxical maturity of Congolese mining law. While the legislative framework offers robust tools to protect state and community interests (strategic status, mandatory local processing, 10% domestic equity), administrative volatility and international litigation risks necessitate an urgent overhaul of the Mining Registry. To sustain investments, the DRC must guarantee absolute transparency when transitioning from exploration titles to commercial exploitation phases.