Glencore PLC FILING OF FREEZING ORDERS AGAINST MUTANDA+KAMOTO (4651M)
April 27 2018 - 11:17AM
UK Regulatory
TIDMGLEN
RNS Number : 4651M
Glencore PLC
27 April 2018
Glencore plc
Baar, Switzerland
27 April, 2018
FILING OF FREEZING ORDERS AGAINST MUTANDA MINING AND KAMOTO
COPPER COMPANY
Ventora Development Sasu ("Ventora"), a company affiliated with
Mr Dan Gertler, has today served in the Democratic Republic of the
Congo ("DRC") freezing orders against Mutanda Mining Sarl
("Mutanda") and Kamoto Copper Company ("KCC"), subsidiaries of
Glencore Plc, for approximately $695 million and US$2.28 billion
respectively.
Ventora alleges that Mutanda has breached an agreement with
Ventora pursuant to which it alleges Mutanda is required to make
royalty payments to Ventora by indicating that it will not pay such
royalties as a result of Mr Gertler's designation as a Specially
Designated National ("SDN"). Ventora asserts that if its claim for
breach is upheld it will be entitled to damages of approximately
$695 million which it alleges is the value of the future royalties
due to it under the agreement.
Ventora alleges that KCC has breached an agreement between KCC,
La Générale des Carrières et des Mines ("Gécamines") and Africa
Horizons Investments Limited ("AHIL") (which Ventora claims has
been assigned to it) pursuant to which it alleges KCC is required
to make royalty payments to Ventora by indicating that it will not
pay such royalties as a result of Mr Gertler's designation as a
SDN. Ventora asserts that if its claim for breach is upheld it will
be entitled to damages of approximately US$2.28 billion which it
alleges is the value of the future royalties due to it under the
agreement.
The freezing orders authorise the bailiff of the Commercial
Court of Kolwezi to freeze certain bank accounts, tangible movable
assets and intangible movable assets, such as receivables, of each
of Mutanda and KCC as well as the mining titles, in each case up to
the amount of the freezing order and prevent Mutanda and KCC from
disposing and/or utilising these assets.
In December 2017, the United States government designated Dan
Gertler and affiliated companies as SDNs, thereby imposing blocking
sanctions on them and companies owned 50% or more by them.
The agreements with Ventora and AHIL were concluded prior to the
designation by Mr Gertler as a SDN and arose when the Gertler
affiliated entities acquired these rights from Gécamines.
KCC disputes the assignment by AHIL of its rights under its
agreement with KCC to Ventora and that Ventora has any claim
against KCC under such agreement.
The agreement between Mutanda and Ventora is subject to English
Law and arbitration in Hong Kong (subject to certain exceptions for
interim and provisional measures). The agreement between KCC and
AHIL is subject to English Law and the exclusive jurisdiction of
the English Courts.
Glencore denies that Mutanda and KCC are in breach of any of
their obligations under their respective agreements with Ventora
and AHIL and also entirely rejects Ventora's calculation of the
value of the future royalties allegedly owed to Ventora. Mutanda
and KCC will vigorously contest the freezing order and any
subsequent proceedings.
Glencore is assessing the impact of the freezing order on
Mutanda and KCC's operations in the DRC, but notes that the
freezing orders may materially adversely affect such
operations.
For further information please contact:
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Ash Lazenby t: +41 41 709 2714 m: +41 79 543 3804 ash.lazenby@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
This announcement contains inside information.
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 90 commodities. The Group's operations comprise around
150 mining and metallurgical sites, oil production assets and
agricultural facilities.
With a strong footprint in both established and emerging regions
for natural resources, Glencore's industrial and marketing
activities are supported by a global network of more than 90
offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, oil and food processing
sectors. We also provide financing, logistics and other services to
producers and consumers of commodities. Glencore's companies employ
around 146,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
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Disclaimer
The companies in which Glencore plc directly and indirectly has
an interest are separate and distinct legal entities. In this
document, "Glencore", "Glencore group" and "Group" are used for
convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for
ease of reference only and do not imply any other relationship
between the companies. Likewise, the words "we", "us" and "our" are
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who work for them. These expressions are also used where no useful
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