DRC: the CNPAV estimates past losses of GECAMINES in its shares and royalties within Mutanda Mining from 2011 to 2020
Congo is not for sale (CNPAV) estimated the DRC’s past losses in its shares and royalties, in one of the country’s largest mining companies, “Mutanda Mining”, at more than one billion euros. US dollars (1,035,000,000 USD), from March 2011 to December 2020. This is revealed by the report of this civil society platform entitled: “Billions lost: financial investigation into Dan Gertler’s transactions in the sector extractif ”, published Wednesday, May 13 in Kinshasa.
Mutanda has been in the top 3 of the largest mining companies in the DRC for most of the past ten years. Before its closure at the end of 2019, Mutanda Mining even becomes the world’s largest cobalt-producing mine. Its reserves will still allow the production of large quantities of copper and cobalt for more than 10 years.
The CNPAV report reveals that GECAMINES sold its stake in Mutanda and Kansuki to two offshore companies owned by Israeli businessman Dan Gertler. This transaction included the rights to royalties and dividends which were to accrue to GECAMINES. This explains the immense loss of GECAMINES from March 2011 to December 2020.
“In March 2011, Gécamines sold its stake in Mutanda (20%) and Kansuki (25%) to Rowny and Biko, two offshore companies of Gertler. This transaction also includes the rights to royalties, “no door” (signing bonuses) and dividends for the project. In July 2013, Mutanda and Kansuki merge to become Mutanda Mining. Gertler then holds a 31% stake in this new entity34. He resells his shares and the right to collect dividends to Glencore in February 2017. Nevertheless, he retains to this day the right to collect the royalties from the project, ”the CNPAV report indicates.
CNPAV calculations take into account the two years of inactivity of Mutanda for reasons of upkeep and maintenance.
Below, the loss estimate table for the DRC
![Ph. Third party rights.](https://deskeco.com/sites/default/files/inline-images/WhatsApp%20Image%202021-05-13%20at%2011.48.50.jpeg)
Estimated minimum future losses for the DRC
Regarding future payments of royalties from Mutanda Mining, the CNPAV explains, in its report, that Dan Gertler acquired these rights by buying Gécamines’ 20% stake in Mutanda in March 2011. He retains these rights despite the buyout of his shares by GLENCORE in February 2017.
Congo is not for sale estimates the DRC’s minimum future losses at US $ 379.7 million.