Glencore PLC KATANGA UPDATE ON KCC RECAPITALISATION PROCESS (7081L)
April 23 2018 - 2:01AM
UK Regulatory
TIDMGLEN
RNS Number : 7081L
Glencore PLC
23 April 2018
Glencore plc
Baar, Switzerland
22 April, 2018
KATANGA MINING PROVIDES UPDATE ON KCC RECAPITALISATION PROCESS
AND NOTES COMMENCEMENT OF DRC LEGAL PROCEEDINGS BY GÉCAMINES
Glencore refers to the announcement by Katanga Mining Limited
("Katanga") in which it announced that Katanga's Democratic
Republic of the Congo ("DRC") state-owned joint venture partner, La
Générale des Carrières et des Mines ("Gécamines"), in Katanga's 75%
DRC operating subsidiary Kamoto Copper Company ("KCC"), has
commenced legal proceedings in the DRC to dissolve KCC following
KCC's failure to address its capital deficiency or, alternatively,
if the Court provides KCC with a period of time within which to
regularize the situation, to request the appointment of an expert
to assess and report to the Court on KCC's financial position and
recapitalisation plan.
Katanga believes that it has several options to remedy KCC's
capital deficiency and avoid KCC's dissolution. Katanga will
continue to attempt to engage in discussions with Gécamines and
will take all other necessary steps to ensure the continuation of
the operations of KCC and protect its rights under the law and
under its joint venture agreement with Gécamines.
Katanga is continuing to assess options for regularising the
capital deficiency, including the conversion of a portion of
existing intercompany debt owed by KCC to Katanga (which is
eliminated on consolidation) into equity or forgiving a portion of
such debt. Any such outcome would impact the distribution of future
cash flows earned by KCC, which might in turn have a materially
adverse impact on Katanga but would not be expected to have a
material impact on the assets, liabilities and net assets of
Katanga and would be expected only to result in a shift within
equity attributable to shareholders and non-controlling interests.
The regularisation of the capital deficiency can be effected by
Katanga on its own initiative or through negotiation with
Gécamines.
If Katanga has taken the necessary steps to regularise KCC's
capital deficiency and this is confirmed by KCC's statutory auditor
on or before the day on which the court renders its judgment on the
merits, then the DRC court cannot issue a dissolution order.
The full Katanga announcement is available at:
http://www.katangamining.com/media/news-releases/2018.aspx.
For further information please contact:
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Ash Lazenby t: +41 41 709 2714 m: +41 79 543 3804 ash.lazenby@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
This announcement contains inside information.
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 90 commodities. The Group's operations comprise around
150 mining and metallurgical sites, oil production assets and
agricultural facilities.
With a strong footprint in both established and emerging regions
for natural resources, Glencore's industrial and marketing
activities are supported by a global network of more than 90
offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, oil and food processing
sectors. We also provide financing, logistics and other services to
producers and consumers of commodities. Glencore's companies employ
around 146,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
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