Gécamines to begin legal proceedings to dissolve Katanga’s DRC-operating subsidiary KCC

Democratic Republic of the Congo (DRC) state-owned miner-trader Gécamines has initiated legal proceedings against its joint venture partner, Glencore-owned Katanga Mining Ltd.

The litigation concerns Katanga’s 75%-owned operating subsidiary, Kamoto Copper Co (KCC), and its failure to rectify a capital deficiency dating back to 2014. Katanga is assessing options towards regularizing the debt, which includes forgiving a portion of the deficiency as well as converting some of the intercompany debt into equity while it continues to pursue engagement with Gécamines regarding the matter. “Based on current projections, cash flows of KCC...

Published

Hassan Butt

April 30, 2018

05:15 GMT

London