AVZ Minerals successfully defends against ICC proceedings

AVZ Minerals Limited (ASX: $AVZ) has successfully defended itself against the ICC arbitration proceedings brought by Jin Cheng Mining Company, a subsidiary of Zijin Mining Limited. The ICC tribunal ruled in favor of AVZ International Pty Ltd (AVZI), stating that it did not have jurisdiction to preside over the proceedings commenced by Jin Cheng. As a result, Jin Cheng has been ordered to reimburse AVZI USD 75,000 in arbitration costs and AUD 813,474 in defense costs, in addition to bearing its legal costs.

Executive commentary on ICC tribunal ruling

The ICC tribunal's ruling in favor of AVZI is a significant outcome for the Company. It reaffirms our position that we hold a clear legal title to a 75% interest in Dathcom and a continuing pre-emptive right over 15% of Cominiere's 25% interest in Dathcom. While the tribunal did not rule on the validity of the sale by Cominière to Jin Cheng, we are pleased with the decision and will continue to address the issues, including those related to corruption, in the upcoming ICC proceedings. We also take note of Zijin's intention to pursue the claim via domestic proceedings in the DRC, and we are evaluating the appropriate response to this development.

Summary of ICC tribunal ruling and outlook

AVZ Minerals' successful defense against the ICC arbitration proceedings brought by Jin Cheng Mining Company reflects a positive outcome for the Company, with the ICC tribunal ruling in favor of AVZI and ordering reimbursement of costs incurred. The decision reinforces AVZ's position regarding its interests in Dathcom and sets the stage for addressing unresolved issues in the upcoming ICC proceedings. As the Company considers the appropriate response to Zijin's intention to pursue the claim via domestic proceedings in the DRC, it remains focused on protecting its rights and interests in Dathcom. The successful outcome of this arbitration adds to AVZ's track record of effectively defending its position and sets the tone for the Company's continued pursuit of its corporate strategy and objectives.