Katanga Mining, the Democratic Republic of Congo (DRC)-based copper-cobalt miner that is 75 per cent-owned by Glencore, has announced an update regarding its legal dispute with DRC state-owned joint venture (JV) partner La Générale des Carrières et des Mines (Gécamines).
The Supreme Court announced last week that KCC could challenge the Kolwezi Commercial Court on competency grounds, and as a result the Kolwezi Commercial Court has made the decision to suspend recapitalisation plans for Katanga (referred to as ‘capital deficiency proceedings’) until the Supreme Court renders its decision; first hearings are scheduled to take place on June 15.
Katanga Mining is currently involved in a legal dispute with Gécamines over a $3.9 billion capital shortfall at Katanga’s Kamoto Copper Company (KCC), a situation that Glencore recently admitted could “materially adversely” affect production in its latest quarterly report.
Gécamines commenced legal proceedings against KCC to dissolve the company due to its alleged failure to address its capital deficiency, or given time by the Supreme Court to address the situation, have an expert appointed to assist KCC with the above-mentioned recapitalisation plan.
According to a statement released by Katanaga, the company “remains determined to find a mutually agreeable resolution of the disputes with Gécamines which it hopes will revitalise the partnership between KCC and Gécamines and provide significant benefits to Gécamines and all stakeholders in the DRC.”