By Oliver Griffin
Glencore PLC (GLEN.LN) said Friday that it has settled a dispute between its Mutanda Mining Sarl and Kamoto Copper Company SA subsidiaries and companies affiliated with mining magnate Dan Gertler in Congo.
In April, Mutanda and KCC were served with freezing orders in Congo for $695 million and $2.28 billion respectively, relating to royalties payments. Gertler-affiliate company Ventora also obtained high court injunctions which, if they had become final, would have enabled it to permanently seize assets at the Mutanda and KCC mines, causing severe disruption.
At the time, the mining company said it was unable to pay royalties to companies affiliated to Mr. Gertler due to the businessman being included on U.S. sanctions lists in December.
Glencore said its only viable option, by which it can avoid asset seizures under Congolese court orders, is to pay the relevant royalties to Ventora in non-U.S. dollars, without involving U.S. persons.
As a result of this agreement, Glencore said that its subsidiaries and affiliate companies of Mr. Gertler, which includes Africa Horizons Investments Limited, have agreed to withdraw all pending and threatened litigation between them.
Glencore said this method of paying the royalties will appropriately address all applicable sanctions obligations.
Write to Oliver Griffin at [email protected]