Glencore DRC subsidiary frozen
JOHANNESBURG - Glencore's mining subsidiaries in the Democratic Republic of Congo have been served freezing orders for alleged unpaid royalties of nearly $3billion (R37bn) by a company affiliated with Israeli billionaire Dan Gertler, Glencore said on Friday.
Gertler, who is the subject of US sanctions, is owed some royalties by Glencore, but the London-listed company disputes the amounts claimed.
The US government added Gertler and affiliated companies to its Specially Designated Nationals list in December last year, accusing him of using his friendship with DRC President Joseph Kabila to secure sweetheart mining deals.
Sources said Glencore would comply with the sanctions, which effectively cut off access to the global financial system.
Glencore said Gertler's Ventora Development Sasu accuses Glencore subsidiary Kamoto Copper Co (KCC) of breaching an agreement by declining to make royalty payments because Gertler was under US sanctions.
Gertler has denied all allegations of impropriety. Ventora is seeking $695 million in unpaid and future royalties from Glencore’s subsidiary Mutanda Mining and $2.28bn from KCC.