Glencore unit Katanga settles DRC Congo dispute

Democratic Republic of Congo state miner Gécamines will drop legal proceedings to dissolve a copper and cobalt joint venture with a subsidiary of Glencore Plc after reaching a settlement with its partner that includes Gécamines getting a US$150 million payment.

14 June 2018 | Economics

“It de-risks the situation. It shows a commercial discussion can be conducted rationally and you can come to a solution where both parties can move forward,”- Paul Gait, an analyst at Bernstein Investment Research.

Glencore unit Katanga Mining Ltd said on Tuesday it had agreed a recapitalisation plan for 75%-owned Kamoto Copper Co with Gécamines, its joint venture partner, involving converting US$5.6 billion of Kamoto’s debt to equity to fix a capital shortfall.

Katanga’s shares listed on the Toronto Stock Exchange jumped 23% to C$1.28.

Investors have been watching the dispute closely, particularly for any impact on supplies of cobalt from Congo, which is by far the world’s biggest producer of the metal used in batteries for electric cars and mobile phones.

Gécamines in April started legal proceedings to dissolve Kamoto, blaming Glencore for high debts that have weighed on the Congo mining company for more than 10 years.

The US$150 million payment will be funded by new loans from Glencore, which owns 86% of Katanga.

“I consider this is a small price to pay,” said Paul Gait, an analyst at Bernstein Investment Research.

“It de-risks the situation. It shows a commercial discussion can be conducted rationally and you can come to a solution where both parties can move forward,” Gait said.

Glencore accounts for more than a quarter of the world’s cobalt output, most of it from Congo, which itself is the source of 60% of global supplies. Any disruption could push up cobalt prices from already historic highs of near US$100 000 a tonne.

Similar News

 

Trade deficit almost doubles

12 hours ago | Economics

Namibia recorded a trade deficit of N$8.3 billion in the first quarter of 2018 compared to N$4.8 billion recorded in the first quarter of 2017,...

Kingon re-appointed as SARS commissioner

23 hours ago | Economics

South African Revenue Service (SARS) acting commissioner Mark Kingon’s time at the helm has been extended by another three months, after minister of finance Nhlanhla...

Support for refugees

23 hours ago | Economics

NDAMA NAKASHOLEA total of N$13.2 million has been allocated in 2018/19 financial year to the administration of refugees programme under the home affairs ministry.The programme...

Totem

23 hours ago | Economics

Quote of the day“The Minerals Council believes that much more work needs to be done to create a Mining Charter that promotes competitiveness, investment, growth...

Egypt's Suez canal reports record high revenue

23 hours ago | Economics

Egypt’s revenue from the Suez Canal for the 2017-2018 financial year rose 11.5% to a record high US$5.585 billion, the canal authority said in a...

UAE to give Ethiopia US$3 billion

23 hours ago | Economics

The United Arab Emirates pledged a total of US$3 billion in aid and investments to Ethiopia on Friday, an Ethiopian official said, a major show...

Eskom says full recovery of power system to take...

23 hours ago | Economics

The company also said the possibility of limited, localised electricity outages on Sunday remained high.Eskom, which produces more than 90% of South Africa’s power, is...

Fuel, inflation increases coming

23 hours ago | Economics

The potential of a trade war between the United States and China, an interest rate hike in the US and a cut in oil production...

Swiss investor acquires 51% of Otavi steel plant

1 day - 18 June 2018 | Economics

NDAMA NAKASHOLEThe shareholding ratio of the new steel manufacturing plant at Otavi will be 51% for a Swiss company and 49% to Otavi Rebar Manufacturing...

MTN aims to launch ­mobile service in Namibia

1 day - 18 June 2018 | Economics

MTN Group, Africa's biggest mobile telecoms firm, is aiming to launch a mobile service in Namibia around the end of August, a company executive told...

Latest News

Kingon re-appointed as SARS commissioner

23 hours ago | Economics

South African Revenue Service (SARS) acting commissioner Mark Kingon’s time at the helm has been extended by another three months, after minister of finance Nhlanhla...

Support for refugees

23 hours ago | Economics

NDAMA NAKASHOLEA total of N$13.2 million has been allocated in 2018/19 financial year to the administration of refugees programme under the home affairs ministry.The programme...

Totem

23 hours ago | Economics

Quote of the day“The Minerals Council believes that much more work needs to be done to create a Mining Charter that promotes competitiveness, investment, growth...

Court reins in spies

23 hours ago | Justice

The flimsy fig leaf of national security and secrecy, used by government, especially the Namibia Central Intelligence Service (NCIS), to withhold information in a constitutional...

Phosphate judgment on Thursday

23 hours ago | Environment

Environment minister Pohamba Shifeta has reserved judgment until Thursday on whether the granting of an environmental clearance certificate to Namibian Marine Phosphate (NMP) will be...

Public grills ECN contenders

23 hours ago | Government

OGONE TLHAGEThe Electoral Commission of Namibia (ECN) has started interviewing candidates for the position of chief electoral officer.For the first time ever, the process, which...

Otjomuise shack fire claims two

23 hours ago | Crime

JANA-MARI SMITH A shack fire in Windhoek’s Otjomuise area killed two people over the weekend.The police reported that the two...

Katrina takes time into own...

23 hours ago | Education

The education ministry has issued a directive that schools may not start earlier than 07:30 or later than 08:30.This follows numerous directives issued by the...

Two in court after drug...

23 hours ago | Justice

Two men arrested in connection with a drug bust at the port of Walvis Bay on Friday made their first court appearance yesterday. Grant Noble...

Load More