Congo State Miner Gave Royalties to Israeli Billionaire Dan Gertler
Reuters reports: Controversial deals
According to Reuters, it was not clear in the contract whether Gecamines received any compensation for ceding the royalty rights to AHIL, whose address in the contract is listed in the Cayman Islands, although Fleurette said it did pay an unspecified amount.
Glencore suspended production at KCC, the third-largest copper mine in Africa’s largest producer of the metal, in response to a global downturn in prices.
It says it expects to resume production in early 2018.
As a result, Fleurette said, it expects to lose a significant amount of money on the deal.
Global Witness stood by its calculation of the value of the deal, saying it was based on information on the website of the Toronto Stock Exchange, where KCC is listed.
“This shows projected potential royalty payments for the life of the mine as totalling $1.596bn.
Gertler has been at the centre of several controversial Gecamines sales before.
According to the Africa Progress Panel, headed by former U.N. Secretary-General Kofi Annan, Congo lost out on $1.36bn in potential revenue between 2010 and 2012 in five mining deals involving Gertler.
He denied any wrongdoing in those deals.
Gertler has long denied paying bribes and says his investments have contributed to Congo’s economic development.
Read more about: Africa Holdings, Dan Gertler, Fleurette Group, Gecamines, Glencore, Israeli billionaire, Kamoto Copper Co (KCC)