Glencore's Congo mining businesses face $3 billion freezing orders
Gertler, who is the subject of U.S. sanctions, is owed some royalties by Glencore, but the London-listed company disputes the amounts claimed.
The U.S. government added Gertler and affiliated companies to its Specially Designated Nationals list in December last year, accusing him of using his friendship with Congo President Joseph Kabila to secure sweetheart mining deals.
Sources close to Glencore said it has been seeking a way to make payments to Gertler without breaching the sanctions.
Gertler`s Ventora Development Sasu is seeking $695 million in unpaid and future royalties from Glencore`s subsidiary Mutanda Mining and $2.28 billion from Glencore subsidiary Kamoto Copper Co (KCC).
In its statement, Glencore said the orders would allow local authorities to freeze certain bank accounts, mining titles and assets.
"Glencore denies that Mutanda and KCC are in breach of any of their obligations ... and also entirely rejects Ventora`s calculation of the value of the future royalties allegedly owed to Ventora," the statement said.
A spokesman for Gertler`s Fleurette Group, previously Glencore`s partner in the mines, declined to comment.
A source familiar with the situation said Glencore is looking to file an appeal early next week.
Glencore also disputes the choice of jurisdiction for the orders and said that the agreement between its subsidiaries and Ventora are subject to English law.
A freezing order could affect mining operations, Glencore said.
The legal action is the latest headache for Glencore`s Congo operations. Its partner on the Kamoto project, Congo state miner Gecamines, said this week that it was starting legal proceedings to dissolve Kamoto because of persistent high debts.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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