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GLENCORE PLC - GLN:Filing Of Freezing Orders Against Mutanda Mining And Kamoto Copper Company

Release Date: 30/04/2018 08:47
Code(s): GLN     PDF:  
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GLN:Filing Of Freezing Orders Against Mutanda Mining And Kamoto Copper Company

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64
Baar, Switzerland
27 April, 2018



     FILING OF FREEZING ORDERS AGAINST MUTANDA MINING AND
                     KAMOTO COPPER COMPANY

Ventora Development Sasu (“Ventora”), a company affiliated with Mr Dan Gertler, has today
served in the Democratic Republic of the Congo (“DRC”) freezing orders against Mutanda
Mining Sarl (“Mutanda”) and Kamoto Copper Company (“KCC”), subsidiaries of Glencore Plc, for
approximately $695 million and US$2.28 billion respectively.

Ventora alleges that Mutanda has breached an agreement with Ventora pursuant to which it
alleges Mutanda is required to make royalty payments to Ventora by indicating that it will not
pay such royalties as a result of Mr Gertler’s designation as a Specially Designated National
(“SDN”). Ventora asserts that if its claim for breach is upheld it will be entitled to damages of
approximately $695 million which it alleges is the value of the future royalties due to it under
the agreement.

Ventora alleges that KCC has breached an agreement between KCC, La Générale des Carrières
et des Mines (“Gécamines”) and Africa Horizons Investments Limited (“AHIL”) (which Ventora
claims has been assigned to it) pursuant to which it alleges KCC is required to make royalty
payments to Ventora by indicating that it will not pay such royalties as a result of Mr Gertler’s
designation as a SDN. Ventora asserts that if its claim for breach is upheld it will be entitled to
damages of approximately US$2.28 billion which it alleges is the value of the future royalties due
to it under the agreement.

The freezing orders authorise the bailiff of the Commercial Court of Kolwezi to freeze certain
bank accounts, tangible movable assets and intangible movable assets, such as receivables, of
each of Mutanda and KCC as well as the mining titles, in each case up to the amount of the
freezing order and prevent Mutanda and KCC from disposing and/or utilising these assets.

In December 2017, the United States government designated Dan Gertler and affiliated
companies as SDNs, thereby imposing blocking sanctions on them and companies owned 50%
or more by them.

The agreements with Ventora and AHIL were concluded prior to the designation by Mr Gertler
as a SDN and arose when the Gertler affiliated entities acquired these rights from Gécamines.

KCC disputes the assignment by AHIL of its rights under its agreement with KCC to Ventora and
that Ventora has any claim against KCC under such agreement.

The agreement between Mutanda and Ventora is subject to English Law and arbitration in Hong
Kong (subject to certain exceptions for interim and provisional measures). The agreement

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between KCC and AHIL is subject to English Law and the exclusive jurisdiction of the English
Courts.

Glencore denies that Mutanda and KCC are in breach of any of their obligations under their
respective agreements with Ventora and AHIL and also entirely rejects Ventora’s calculation of
the value of the future royalties allegedly owed to Ventora. Mutanda and KCC will vigorously
contest the freezing order and any subsequent proceedings.

Glencore is assessing the impact of the freezing order on Mutanda and KCC’s operations in the
DRC, but notes that the freezing orders may materially adversely affect such operations.


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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Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities.
In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made
to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do
not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to
refer collectively to members of the Group or to those who work for them. These expressions are also used where no
useful purpose is served by identifying the particular company or companies.


Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank Division)

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