Glencore's Katanga Mining Assessing Ways to Raise Capital for Congo Subsidiary
April 23 2018 - 2:08AM
Dow Jones News
By Oliver Griffin
Glencore PLC (GLEN.LN) said Sunday that its majority-owned
subsidiary, Katanga Mining Ltd. (KAT.T), is assessing options to
raise capital to resolve a dispute between its copper project in
Congo and the African nation's state-owned mining company.
The Anglo-Swiss commodities trader and miner said that Katanga
is looking to raise capital for its 75%-owned Kamoto Copper
Company--its operating subsidiary in Congo--after its state-run
joint venture partner Gecamines launched legal proceedings to
dissolve Kamoto Copper over its capital deficiency.
Glencore said that Katanga could convert of a portion of
existing intercompany debt, which it is owed by Kamoto Copper, into
equity, or forgive a portion of such debt.
Either solution will affect the distribution of future cash
flows earned by Kamoto Copper, which might in turn have a
materially adverse impact on Katanga, Glencore said.
Negative effects wouldn't be expected to have a material impact
on the assets, liabilities and net assets of Katanga, Glencore
said.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
April 23, 2018 02:53 ET (06:53 GMT)
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