{"id":22624,"date":"2018-06-14T00:00:05","date_gmt":"2018-06-13T22:00:05","guid":{"rendered":"https:\/\/southafricatoday.net\/africa-news\/central-africa\/dr-congo\/kcc-dispute-gecamines-reaches-an-agreement-with-katanga-group-and-defines-with-glencore-the-foundations-for-a-new-win-win-partnership\/"},"modified":"2018-06-14T00:00:06","modified_gmt":"2018-06-13T22:00:06","slug":"kcc-dispute-gecamines-reaches-an-agreement-with-katanga-group-and-defines-with-glencore-the-foundations-for-a-new-win-win-partnership","status":"publish","type":"post","link":"https:\/\/southafricatoday.net\/africa-news\/central-africa\/dr-congo\/kcc-dispute-gecamines-reaches-an-agreement-with-katanga-group-and-defines-with-glencore-the-foundations-for-a-new-win-win-partnership\/","title":{"rendered":"KCC dispute: G\u00c9CAMINES reaches an agreement with KATANGA GROUP, and defines with GLENCORE the foundations for a new win-win partnership"},"content":{"rendered":"<p><\/p>\n<p>On 12 June 2018, G&Eacute;CAMINES (<a href=\"http:\/\/www.gecamines.cd\/\" target=\"_blank\" rel=\"noopener\">www.Gecamines.cd<\/a>), together with its subsidiary SOCI&Eacute;T&Eacute; IMMOBILI&Egrave;RE DU CONGO (&ldquo;<strong>SIMCO<\/strong>&rdquo;), entered into with KATANGA MINING LIMITED and some of its affiliated companies (the &ldquo;<strong>KATANGA GROUP<\/strong>&rdquo;) as well as their joint company KAMOTO COPPER COMPANY (&ldquo;<strong>KCC<\/strong>&rdquo;), a settlement agreement (the &ldquo;<strong>Agreement<\/strong>&rdquo;).<\/p>\n<\/p>\n<p>Under the terms of the Agreement, the following goals and results are targeted, among others:<\/p>\n<\/p>\n<ul>\n<li>KCC&rsquo;s net equity will be restored in accordance with applicable laws&nbsp;;&nbsp;<\/li>\n<li>KCC&rsquo;s indebtedness towards the GLENCORE group will be reduced from 9 billion USD down to 3.45 billion USD as at 1 January 2018;<\/li>\n<li>Interest rates applicable on intra-group loans are revised and shall no longer exceed 6% per year;<\/li>\n<li>On the basis of KCC&rsquo;s current business plan, as early as the 2019 fiscal year, G&Eacute;CAMINES will start, for the first time, receiving dividends, which assessed cumulated amount should exceed 2 billion USD over the next ten years;<\/li>\n<li>The profits will allow for the payment of corporate taxes being likely to significantly contribute to the replenishment the Congolese State&rsquo;s treasury;<\/li>\n<li>A better valuation, in the future, of G&Eacute;CAMINES&rsquo; contribution of the copper and cobalt deposits to the partnership through a significant increase of the amount per ton of the <em>pas de porte<\/em>, from 35 USD to 110 USD, and which can reach 170 USD in certain scenarios; &nbsp;<\/li>\n<li>A significant increase of the valuation of G&Eacute;CAMINES&rsquo; ownership in KCC, which value was until then nil due to the high level of indebtedness of the company;<\/li>\n<li>The waiver by KCC to the benefit of the JORC certified reserves amounting to 3,992,185 tCu and 205,629 tCo (the &ldquo;<strong>Reserves<\/strong>&rdquo;), releasing G&Eacute;CAMINES from its obligation to deliver the Reserves or, failing that, to pay a counter-value of a maximum amount of 285 million USD;<\/li>\n<li>The payment by the KATANGA GROUP of a settlement indemnity (150 million USD) in favor G&Eacute;CAMINES; and<\/li>\n<li>The withdrawal by G&Eacute;CAMINES and SIMCO, at closing, from the judicial proceeding initiated before the Commercial Court of Kolwezi on 20 April 2018.<\/li>\n<\/ul>\n<p>G&Eacute;CAMINES welcomes the outcome of the discussions with the KATANGA GROUP and its majority shareholder GLENCORE PLC, and the new foundations now set for the partnership, with a view to an effective sharing of wealth, with immediate financial benefits for all the stakeholders, and in particular the Democratic Republic of the Congo and the affected communities. G&Eacute;CAMINES hopes that upcoming negotiations with other partners and companies will be conducted in a similar open and respectful climate, and will reach the same satisfactory outcome.&nbsp;<\/p>\n<p> <i>Distributed by APO Group on behalf of G\u00e9camines SA.<\/i><\/p>\n<p><strong>Media contact:&nbsp; &nbsp; &nbsp; <\/strong>&nbsp; &nbsp; &nbsp;<br \/> Karl LAWSON: klawson@hopscotchafrica.com;&nbsp;+33 6 15 60 39 62<\/p>\n<p><strong>About G&Eacute;CAMINES:<\/strong><br \/> G&Eacute;CAMINES (www.Gecamines.cd) is a private law commercial company, leading actor of the mining sector in the Democratic Republic of the Congo.<\/p>\n<p><a href=\"https:\/\/www.africa-newsroom.com\/press\/kcc-dispute-gecamines-reaches-an-agreement-with-katanga-group-and-defines-with-glencore-the-foundations-for-a-new-winwin-partnership?lang=en\" target=\"_blank\" rel=\"noopener\">Source<\/a><br \/>\n<br \/>South Africa Today Africa \u2013 Central Africa <a title=\"Democratic Republic of Congo\" href=\"http:\/\/southafricatoday.net\/africa-news\/category\/central-africa\/dr-congo\/\">Democratic Republic of Congo<\/a> News<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 12 June 2018, G&Eacute;CAMINES (www.Gecamines.cd), together with its subsidiary SOCI&Eacute;T&Eacute; IMMOBILI&Egrave;RE DU CONGO (&ldquo;SIMCO&rdquo;), entered into with KATANGA MINING LIMITED and some of its affiliated companies (the &ldquo;KATANGA GROUP&rdquo;) as well as their joint company KAMOTO COPPER COMPANY (&ldquo;KCC&rdquo;), a settlement agreement (the &ldquo;Agreement&rdquo;). Under the terms of the Agreement, the following goals and [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":188473,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[278],"tags":[258,256,4696,281,4691,450,279,280,257,254],"class_list":["post-22624","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dr-congo","tag-africa","tag-africa-news","tag-central-africa","tag-democratic-republic-of-congo","tag-dr-congo","tag-dr-congo-news","tag-drc","tag-drc-news","tag-news","tag-south-africa-today"],"_links":{"self":[{"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/posts\/22624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/comments?post=22624"}],"version-history":[{"count":0,"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/posts\/22624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/media\/188473"}],"wp:attachment":[{"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/media?parent=22624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/categories?post=22624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/southafricatoday.net\/africa-news\/wp-json\/wp\/v2\/tags?post=22624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}