Gertler group loaned Congo's Gecamine $196 mln for mine buyout

By Peter Jones KINSHASA (Reuters) - Israeli billionaire Dan Gertler's Fleurette Group loaned Congo's state miner Gecamines $196 million last year to purchase two mines containing some of the country's most promising copper reserves, Fleurette said on Tuesday. Gertler, an influential figure in Democratic Republic of Congo's mining and oil sectors with close links to the Kinshasa government, has been the target of transparency campaigners in the past for a series of large-scale transactions. Fleurette denies any secrecy in its Congo dealings. Fleurette provided the financing to Gecamines in January 2013 through a short-term six-month loan with an annual interest rate of 6 percent, the company said in a statement prompted by a media report on Monday about the arrangement. Gecamines used the money to buy out British Virgin Islands-registered Copperbelt Minerals's 68 percent stake in the Deziwa and Ecaille C projects in the copper-rich Katanga province, which form a cornerstone of the company's plans to once again become a major producer. The projects hold estimated reserves of 4.6 million tonnes of copper. "This financing resulted in Gecamines regaining full control and ownership of one of the largest greenfield copper discoveries in the DRC," the statement said. "Most of the loan has been settled in full and Fleurette expects the remainder to be repaid in due course," it said. Gecamines used its minority joint venture interests in Glencore's Kamoto Copper Company and ENRC's Metalkol project as collateral for the loan. In its 1980s heyday, Gecamines produced nearly 500,000 tonnes of copper, but it reported only 35,000 tonnes in 2012.

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