Israeli businessman Beny Steinmetz and diamond merchant Dan Gertler are among the men operating in the resource-rich Democratic Republic of Congo. Gertler, an associate of Congo President Joseph Kabila, owns several mines in the country, and disclosed part of the value of his assets in the country in an announcement of sale.
Kazakh mining giant JS Eurasian Natural Resources Company plc (LSE: ENRC) announced on Friday that it was acquiring the 50.5% controlling interest in Gertler's company, Camrose Resources Ltd., for $175 million. ENRC will pay $50 million in cash and the rest in promissory notes that will mature between nine and 24 months.
Camrose's main assets are indirect holdings in five copper and cobalt exploitation licenses in the Congo. "Globes" revealed Gertler's some of those holdings two months ago. The holdings include 64% of Africo Resources Ltd. (TSX: ARL), which has a market cap of C$62 million, and which owns owns a 75% interest in the exploitation license for the Kalukundi property in the Kolwezi District of Katanga Province; a 56% stake in La Congolaise de Mines et de Développement, which holds the exploitation licenses for Kii, Mashitu and Pangalume, which are contiguous to Africo's mine; and 100%% of Highwind Properties Ltd., Pareas Ltd., Interim Holdings Ltd., and Blue Narcissus Ltd., which jointly own a 70% interest in the exploitation license for the Kolwezi Tailings site.
ENRC has an Israeli angle; one of its controlling shareholders is billionaire Alexander Mashkevich, a Kyrgyzstan-born Jewish oligarch, and an Israeli and Kazakh dual national. He does considerable business with Steinmetz.
In an interview "Globes" a few months ago, Mashkevich said that he and Steinmetz were not partners in Africa. It now appears that Mashkevich's partner in the Congo is Gertler.
ENRC is traded on the London Stock Exchange. Its share price fell 2% on Friday to $8.68, giving a market cap of ₤11.18 billion.
"Forbes" has estimated Mashkevich's fortune at $3.3 billion. He spends most of his time in the UK and Belgium. He immigrated to Israel in 1991, when he was 37, and obtained Israeli citizenship, but decided not to make his primary residence in the country.
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2010
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