Saturday, June 16, 2018

"The Inside Story of Glencore's Hidden Dealings in Democratic Republic of the Congo"

That was the headline for a post back in December 2017. We introduced it with:
This is going-on two months old but is good background for some stuff that will be coming out in 2018....
Here's the follow-up from Reuters, June 15:

UPDATE 2-Glencore settles with Gertler over Congo royalties
* Mining code still in dispute
* Glencore says has discussed settlement with U.S., Swiss agencies (Adds reaction, detail)
By Barbara Lewis

LONDON, June 15 (Reuters) - Glencore has settled a mining row in Democratic Republic of Congo with Israeli billionaire Dan Gertler by agreeing to pay royalties in a currency other than U.S. dollars, lowering the risk of disruption to copper and cobalt supplies.

U.S. sanctions on Gertler, Glencore’s former Israeli partner in Congo, had triggered litigation and a legal tangle that investors said might affect supplies of cobalt, needed for electric vehicle batteries, from the world’s biggest producer of the metal.

Glencore earlier this week reached a settlement in another dispute involving its Kamoto copper and cobalt mine in Congo, although it remains at odds with the Congolese government over a mining code that increases taxes and royalties on minerals.

Gertler’s Ventora Development Sasu had been seeking $695 million in unpaid and future royalties from Glencore’s subsidiary Mutanda Mining and $2.28 billion from Glencore subsidiary Kamoto Copper Co (KCC).

Ventora accused KCC of breaching an agreement by declining to make royalty payments because Gertler was under U.S. sanctions, Glencore said in April.

The U.S. government added Gertler and affiliated companies to its sanctions list in December last year, accusing him of using his friendship with Congo President Joseph Kabila to secure sweetheart mining deals. Gertler has denied all allegations of impropriety....