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Katanga Mining ink settlement of Ventora and Africa Horizons Dispute

Mining News - Published on Tue, 19 Jun 2018

Image Source: news.com.au
Katanga Mining Limited announced that an update on its announcement of April 27, 2018 in respect of freezing orders filed against Katanga's 75% subsidiary, Kamoto Copper Company, by Ventora Development Sasu, a company affiliated with Mr Dan Gertler.

Katanga, in conjunction with Glencore, has carefully considered its various legal and commercial options in connection with its dispute with Ventora and its obligations towards Africa Horizons Investments Limited a company also affiliated with Mr. Dan Gertler, as well as to its shareholders, customers and other shared stakeholders including the communities in which they operate in the Democratic Republic of the Congo.

Based on its review, Katanga has determined that in the circumstances the only viable option, for its sole operation, KCC, to avoid the material risk of seizure of its assets under DRC court orders is for KCC to pay the relevant royalties as and when they become due to Ventora in non-US dollars, without involving US persons, in order to discharge its obligations under the terms of the pre-existing contracts with AHIL previously disclosed by Katanga. KCC has therefore entered into a settlement deed with AHIL and Ventora pursuant to which the parties have agreed to withdraw all pending and threatened litigation between them. KCC has also acknowledged the assignment by AHIL to Ventora of the royalties initially owed by KCC to AHIL.

Katanga believes that payment in non-US dollars of royalties to Ventora without the involvement of US persons would appropriately address all applicable sanctions obligations

Katanga is a substantial investor and partner in the DRC and is committed to sustainable mining, creating employment and supporting local businesses, thereby providing substantial revenues to local and national government and making voluntary contributions to improve living standards in the communities in which it operates.

Katanga is a significant producer of copper and cobalt, a metal that is of critical importance for batteries for electric vehicles and portable electronics as well as essential technology, defense and industrial applications. Katanga's operations are a significant source of industrial cobalt and guarantees the provenance of its production material and the exclusion of child labour or conflict minerals from the supply chain.

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Posted By : Rabi Wangkhem on Tue, 19 Jun 2018
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