Swiss mining giant Glencore will pay $534 million for holdings in two copper mines in Africa belonging to Israeli billionaire Dan Gertler. Glencore will buy the 31% in mining company Muntanda Mining Sarl owned by Fleurette, a Gertler-owned company, and the minority holdings in Katanga Mining. The price for the deal was based on an independent valuation by Canadian firm BMO Capital Markets. Sums for repayment of loans taken by Fleurette from Glencore and an owners' loan owed by Mutanda to Fleurette were included in the final amount. The two mining companies operate in Congo, where Gertler has done business for more than a decade.
It was previously reported that the UK National Fraud Intelligence Bureau was investigating deals in Congo by Fleurette in which bribery was suspected. According to global media reports, Gertler was also involved in an investigation of the Och-Ziff hedge fund by the US Department of Justice, in which Gertler was suspected of paying over $100 million in bribes to Congo President Joseph Kabila. Gertler denied the accusations.
Fleurette said in response, "We are very proud of what we achieved in Mutanda, and are glad that, in cooperation with Glencore, Fleurette enabled the mine to realize its full potential and become one of the largest sources of revenue in Congo. We have proven that we are capable of making decisions about major investments in challenging and complex operating environments, and of enlarging good assets that are providing huge profits for people in Congo. Mutanda and Kamoto Copper Company (KCC, a subsidiary of Katanga Mininng) have generated $3 billion in tax revenues since we became involved. These activities made a substantial contribution to the Congolese economy. Today, with the mine operating at full capacity, we feel that it is the right time to sell our investment and invest anew in other activity in Congo."
Published by Globes [online], Israel Business News - www.globes-online.com - on February 14, 2017
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