AVZ seeks favorable tax status for Manono lithium project
Special report: AVZ could benefit from exemptions or reductions in corporate taxes and customs duties for its Manono lithium and tin project as part of its agreement with the DRC government.
Manono’s importance to the government of the Democratic Republic of the Congo was clearly highlighted with the execution of a binding memorandum of understanding to place the project in a new special economic zone (SEZ).
As part of the memorandum of understanding, Minerals AVZ (ASX: AVZ) and the Ministry of Industry will negotiate on the creation of the Manono SEZ in Tanganyika province and the development of basic infrastructure in the region.
This will revolve around the development of the Manono Lithium and Tin project, which has the potential to be a world-class long-lived mine.
SEZs in the DRC generally offer exemptions or reductions in taxes, royalties and duties to investors for a specified period or permanently.
However, AVZ noted that as a developer of Manono’s SEZ, he would be eligible for additional benefits.
The DRC government has also pledged to support the company in the administrative process of developing basic infrastructure, including the renovation of the Mpiana Mwanga hydropower plant and communication channels such as roads and rail transport. to promote industrialization in the SEZ.
“The Congolese government has carried out what it said it would do to support the district of Manono and it clearly agrees with us that AVZ’s Manono lithium and tin project can be a major catalyst for the redevelopment and revitalization of the Manono District to its former glory, ”said Chief Executive Officer Nigel Ferguson.
AVZ is currently putting the finishing touches on its definitive feasibility study, which is expected to be published by the end of March.
It has also started work on the project site and will soon begin infill drilling for material under the Roche Dure main pit, which could move the resource to the highest confidence category.
This story was developed in conjunction with AVZ Minerals, a Stockhead advertiser at the time of publication.
This story is not advice on financial products. You should consider getting independent advice before making any financial decisions.