Diversified miner Glencore on Monday denied that its Mutanda Mining and Kamoto Copper Company (KCC) subsidiaries, in the Democratic Republic of the Congo (DRC), are in breach of any of their obligations under their respective agreements with Ventora Development and Africa Horizons Investments (AHIL).
This follows after Ventora on Friday served freezing orders against Mutanda and KCC for about $695-million and $2.98-billion, respectively.
Ventora alleges that Mutanda has breached an agreement with Ventora and that Mutanda is required to make royalty payments to Ventora.
It further asserted that if its claim for breach is upheld, it will be entitled to damages of about $695-million, which it alleges is the value of the future royalties due to it under the agreement.
Ventora further alleged that KCC has breached an agreement with La Générale des Carrières et des Mines (Gécamines) and AHIL and that KCC is required to make royalty payments to Ventora.
If its claim for breach is upheld, it will be entitled to damages of about $2.98-billion, which it alleges is the value of the future royalties due to it under the agreement.
Glencore said it rejects Ventora’s calculation of the value of the future royalties allegedly owed to Ventora.
Glencore is assessing the impact of the freezing order on Mutanda and KCC’s operations in the DRC, and warns that the freezing orders may materially adversely affect those operations.
The freezing orders authorise the bailiff of the Commercial Court of Kolwezi to freeze certain bank accounts, tangible movable assets and intangible movable assets, such as receivables, of each of Mutanda and KCC, as well as the mining titles, in each case up to the amount of the freezing order and prevent Mutanda and KCC from disposing or using these assets.
KCC is, meanwhile, also facing possible dissolution after State-owned Gécamines last week launched a legal bid over KCC’s failure to address its capital deficiency by the December 31, 2017, deadline.