Glencore Settles Dispute With Dan Gertler Affiliate Companies
June 15 2018 - 2:03AM
Dow Jones News
By Oliver Griffin
Glencore PLC (GLEN.LN) said Friday that it has settled a dispute
between its Mutanda Mining Sarl and Kamoto Copper Company SA
subsidiaries and companies affiliated with mining magnate Dan
Gertler in Congo.
In April, Mutanda and KCC were served with freezing orders in
Congo for $695 million and $2.28 billion respectively, relating to
royalties payments. Gertler-affiliate company Ventora also obtained
high court injunctions which, if they had become final, would have
enabled it to permanently seize assets at the Mutanda and KCC
mines, causing severe disruption.
At the time, the mining company said it was unable to pay
royalties to companies affiliated to Mr. Gertler due to the
businessman being included on U.S. sanctions lists in December.
Glencore said its only viable option, by which it can avoid
asset seizures under Congolese court orders, is to pay the relevant
royalties to Ventora in non-U.S. dollars, without involving U.S.
persons.
As a result of this agreement, Glencore said that its
subsidiaries and affiliate companies of Mr. Gertler, which includes
Africa Horizons Investments Limited, have agreed to withdraw all
pending and threatened litigation between them.
Glencore said this method of paying the royalties will
appropriately address all applicable sanctions obligations.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
June 15, 2018 02:48 ET (06:48 GMT)
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