27th Apr 2018 17:36
LONDON (Alliance News) - FTSE 100-listed Glencore PLC said Friday Ventora Development Sasu has filed claims for royalties against two of its subsidiaries in the Democratic Republic of the Congo worth just under USD3.00 billion.
Ventora, affiliated to businessman Dan Gertler, has served freezing orders against Mutanda Mining SARL and Kamoto Copper Co for USD695.0 million and USD2.28 billion respectively.
Ventora, Glencore said, alleges both companies have breached agreements which required them to pay royalties to it due to Gertler's designation as a specially designated national in the DRC.
The orders authorise the bailiff of the Commercial Court of Kolwezi to freeze assets and bank accounts related to the two companies as well as mining titles.
Commodities house Glencore said in December the US government assigned Gertler and his affiliated companies as specially designated nationals, imposing blocking sanctions on them and companies owned by more than 50% by them.
Glencore said the agreements with Ventora were signed before this designation. It denies its subsidiaries are in breach of any obligations and also "entirely" rejects Ventora's damages valuations.
Katoro and Mutanda will, it added, "vigorously" contest the freezing order and any subsequent proceedings.
Glencore is assessing the impact of the order, which it said may "materially" affect operations in the DRC.
Glencore shares ended down 0.6% on Friday at 367.77 pence pence each.
Related Shares:
Glencore