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GLENCORE

Glencore’s Congo mine acquisition raises issues

The Carter Center Friday called on the government of the Democratic Republic of Congo to reveal the terms under which a state firm sold a mining concession to a subsidiary of Swiss group Glencore.

Glencore's Congo mine acquisition raises issues
Photo: AFP

“The Carter Center urges the government of the Democratic Republic of the Congo to release the terms of the deal in which state-owned mining company Gecamines lost its interest in the potentially rich Kawama concession,” the organization founded by former US president Jimmy Carter said.
   
The Bloomberg news agency on Wednesday revealed the unannounced deal, in which Gecamines sold the concession in the mineral-rich Katanga province in the country's southeast to Mutanga Mining.
   
The Swiss mining and commodities giant, based in the canton of Zug, owns 69 percent of Mutanda Mining, while Israeli billionaire Dan Gertler's Fleurettee Group holds the other 31 percent.
   
Critics claim Gertler, who is close to Congolese President Joseph Kabila, built his fortune by acquiring mining permits in the DRC in dubious circumstances, although he has always denied this.
   
According to Bloomberg, the Kawama concession, potentially rich in copper and cobalt, was acquired from a joint venture in which Gecamines holds a minority interest.
   
“I can confirm,” Glencore spokesman Charles Watenphul told AFP.

“Yes, we have acquired permit 658.”
   
Questioned by AFP, Fleurette Group declined to comment.

A source close to the case said Glencore, as a majority partner of Mutanda Mining, had “operational control” of the management of that company.
   
Under Congolese law, the government is required to publish any transfer of state resources within two months, but the February sale of the Kawama concession only came to light through Bloomberg's report.
   
No government reaction could be obtained after the announcement of the sale.
   
The DRC was admitted in July 2014 as a full member of the Extractive Industries Transparency Initiative (EITI), which “is a global standard to promote open and accountable management of natural resources”.
   
The International Monetary Fund in 2012 suspended a line of credit to the DRC after failing to obtain sufficient information on a transfer of shares in a mining company in the state portfolio.
   
The country has enormous potential mineral wealth, with huge reserves of cobalt, copper, diamonds, gold, silver, zinc and uranium largely in the east.
   
But conflict, along with pillaging, illegal mining and a lack of investment, have kept the country classified as low-income, with 70 percent of people living below the poverty line.

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GLENCORE

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore

At least 19 illegal miners were killed on Thursday after part of a copper mine collapsed in southeastern DR Congo, Swiss-based mining giant Glencore said.

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore
Photo: AFP

The incident happened when two galleries caved in at a mine in the Kolwezi area operated by Kamoto Copper Company (KCC), a subsidiary of Glencore.

“Tragically there were 19 fatalities today, with possible further unconfirmed fatalities,” Glencore said in a statement, which said there had been recurrent problems with illicit mining on its concessions.

Other reports suggest the death toll could be higher. 

The Congolese site Actualite.CD reported at least 36 deaths.

“The illegal artisanal miners were working two galleries in benches overlooking the extraction area. Two of these galleries caved in,” the company said.

Glencore said KCC had observed a “growing presence” of illegal miners, with on average 2,000 people a day intruding on its operating sites.

“KCC urges all illegal miners to cease from putting their lives at risk by trespassing on a major industrial site,” Glencore said.

Illegal mining is common and frequently deadly in Democratic Republic of Congo, where safety is often poor and risk-taking high.

Figures indicating the scale of the problem are sketchy, given that many mines are illegal and remote.

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