Country of residence :
Dan Gertler (born December 1973) is an Israeli businessman and the founder and President of the DGI (Dan Gertler International) Group of Companies. He has large interests in diamonds and copper mining in the Democratic Republic of the Congo (DRC), formerly Zaire, the largest country in sub-Saharan Africa. He has also invested in iron ore, gold, cobalt, agriculture, banking and oil.
Dan Gertler was born in December 1973.
He is a grandson of Moshe Schnitzer, first President and co-founder of the Israeli Diamond Exchange in 1947, who won the Israel Prize in 2004.
His family was traditionally involved in cutting and merchandising diamonds.
While growing up, Gertler spent as much time as he could learning about the diamond trade from his father and grandfather.
As soon as he had completed his 3-year mandatory service in the Israeli Defense Forces he opened his own diamond business.
Gertler founded the Dan Gertler International (DGI) group of companies in 1996.
The Yedioth Aharonoth weekend supplement on 19 September 1999 asserted that in 1997 Gertler had been involved in financing a program to buy diamonds in Liberia and Sierra Leone in exchange for military training and arms deliveries.
The plan fell apart due to the chaotic political changes and military events in Sierra Leone at that time.
Gertler was also involved in trading in Russia and Guinea.
In September 2011 the International Monetary Fund asked for explanations from Sodimico and Gecamines, both state owned mining companies, concerning sales of assets below market value and without publicity. At the time, the IMF was providing loans to the DRC worth $561 million to improve the economy.
Gecamines had sold its 20% share of the Mutanda project to Rowny Assets.
This company, registered in the British Virgin Islands, was said to be 'associated' with Gertler.
The share was worth an estimated $600 million, but was sold for $137 million.
Analysts criticized lack of transparency in the disposal of key assets by Gecamines, which the government was preparing for sale to private investors.
In December 2012, it was reported that Eurasian Natural Resources Corporation (ENRC) had spent $550m buying itself out of a DRC copper-mining partnership with Gertler, who has been accused of making the majority of his $2.5bn fortune from 'looting Congo at the expense of its people'.
The Fleurette Group has owned the Kansuki concession since 2006.
ENRC was buying 50.5% of Camrose from Gertler. Camrose's key asset was a 70% interest in the Kolwezi project.
The Kolwezi property was sold to Gertler for $20 million. He in turn sold 50.5% of Camrose to ENRC for $175 million.
In April 2011 a British MP called for an investigation of the transaction under the Bribery Act.
Camrose's other assets included a '64% stake in Canada listed Africo Resources which held a 75% interest in Kalukundi exploitation licence as well as 56% indirect interest in Comide Sprl, which held the exploitation licence for Mashitu, Pangalume and Kii tenements.'
According to an article in the Mail and Guardian (Wood et al. 2012)
Highwind Group 2010
*Gentler Family Trust > Camrose Resources Ltd > Highwind Group (2010)
In September 2009 the DRC government revoked the license of Canadian miner First Quantum Minerals to operate the Kolwezi copper tailings project. First Quantum appealed the decision. The CEO Philip Pascal said 'the activities on the legal side come from a small and very influential group of individuals in the Congo and don't necessarily mirror the sentiments of a number of other authorities'.
Later the government also expropriated the Frontier and Lonshi mines from First Quantum.
In March 2011 the state-owned Sodimico sold its 30% stake in these two mines for $30 million to two companies registered in the British Virgin Islands. The total estimated value of the mines was over $1.6 billion.
Camrose Resources Ltd, a Gertler family trust company, purchased s 62.5% share of Africo Resources in 2008.
In February, 2009 Africo confirmed that it had the go ahead from the DRC government for 75%-owned Kalukundi project.
In 2009 Vancouver, Canada-based through Dan Gertler's newly formed British Virgin Island-based company, Highwinds old ENRC 50.5% of Kolwezi Mine Tailings (KWT) a 'multi-billion dollar copper and cobalt tailings reprocessing facility' that had been expropriated in 2009 by the DRC from Vancouver, Canada-based through Dan Gertler's newly formed British Virgin Island-based company, Highwinds.
Prairie International Ltd. 2007 Mukondo, Kanaga Copper Belt
*Gentler Family Trust > Prairie International Ltd. > Tremalt Ltd > Savannah Mining
Miningmx reported in November 2007 that natural resources investor Dan Gertler’s Prairie International Ltd. and CAMEC had created a Joint Venture Vehicle in the Mukondo, a Katanga Province copper and cobalt project, with concessions held by the state-owned Gecamines. 'Tremalt will be transferred into the joint venture vehicle.'
In February 2008 the two companies announced that the Mukondo Mountain operations had restarted.
Tremalt Ltd 2006 Mukondo Mine, Kanaga Copper Belt
Gertler’s Family Trust > Prairie International Ltd > Tremalt Ltd > Mukondo Mine
In June 2006 Gertler bought Tremalt, which had a half share in the Mukondo Mine for about $60m from the Zimbabwean businessman John Bredenkamp.
In 2007 Tremalt was owned by Prairie International Ltd, of which Dan Gertler’s family trust was a major shareholder.
Tremalt owned 80% of Savannah Mining, which held concessions C17 and C18 in Katanga Province and 50% of the Mukondo project. The other 50% of Mukonda was held by Boss Mining, which in turn was 80% owned by Central African Mining & Exploration Company (CAMEC).
Boss Mining had rented and operated Bredenkamp's half of Mukondo. Gertler terminated this arrangement.
=Nikanor Plc Copper =
*Gertler Family Trust > Catela Global > Anvil Trust
In February 2007, 22% of the Nikanor Mining company was owned by the Gertner Family Trust and 14% by Dan Gertler.
Gertler and Steinmetz placed Global Enterprises Corporate (GEC)'s 75% share in KOV into Nikanor Plc., registered in the Isle of Man. Nikanor's stock was listed on on the LSE's Alternative Investment Market in London in July 2006. The IPO raised $400 million, and Nikanor's market capitalization reached $1.5 billion.
In June 2007, 'Glencore and partner Dan Gertler, an Israeli mining magnate, paid GBP300 million for a quarter-stake in mining company Nikanor, which was seeking to revive derelict copper mines next to Katanga Mining's properties. That deal gave Glencore exclusive rights to sell all Nikanor's output -- an 'offtake' agreement.... [Then, o]n Christmas Eve 2008, ... [having] lost 97 percent of its market value over the previous six months ... in the depths of the global financial crisis and ... running out of cash, Katanga accepted a lifeline it could not refuse. Glencore wanted control. For about US$500 million in a convertible loan and rights issue, Katanga agreed to issue more than a billion new shares and hand what would become a stake of 74 percent to Glencore. ... [By early 2011], with copper prices regularly setting records above US$10,000 a ton, Katanga's stock market value [had reached] nearly US$3.2 billion.... [Since the Glencore acquisition], Katanga ... is reaping the benefit of the surging markets and its wealthy, powerful owner. After losing US$108 million in 2009, it posted an annual profit of US$265 million in 2010.'
Although RBC Capital Markets analyst Cailey Barker speculated that Anvil would use the cash infusion for acquisitions, the company insisted it would remain focused on completing its Kinsevere Stage II project.
In August 2008 the amount to be paid was lowered to about C$237 million due to 'the significant deterioration in market conditions for resource companies'.
=Emerald Star Enterprises Limited BVI 2009 SMKK
Emerald Star Enterprises Limited, a company controlled by Gertler's Family Trust, was incorporated October 29, 2009 in the British Virgin Islands. December 21, 2009 Emerald Star Enterprises Limited sold an option to buy the remaining 50 percent stake of Société Minière de Kabolela et de Kipese SPRL, (a company formed by Melkior Resources Inc, and Gecamines that holds the rights to develop the Kabolela cobalt - copper deposit) to Katash-founded mining company Eurasian Natural Resources Corporation (ENRC) who already owned 50 percent. The other 50 percent actually belonged to state-woned Gecamines. In February 2010 Emerald Star Enterprises Limited actually purchased Gecamines 50 percent for $15 million and sold these shares to Eurasian Natural Resources Corporation (ENRC) for $50 million. Emerald Star Enterprises Limited paid $15 million, and sold for $75 million making a 500 percent return.
Gecamines had sold its 20% share of the Mutanda project to Rowny Assets. This company, registered in the British Virgin Islands, was said to be 'associated' with Gertler. The share was worth an estimated $600 million, but was sold for $137 million.
=Biko Invest Corporation BVI 2011=
Biko Invest Corporation BVI linked to Dan Gertler was incorporated February 23, 2011 in the British Virgin Islands. Biko Invest Corporation BVI also linked with Gertler bought a quarter of Kansuki Sprl from Gecamines in 2011.) According to a report in 'Rough & Polished' Gertler paid $20 million to Kabila for a monopoly on exporting Congo diamonds.
Even with International Diamond Industries-Congo (IDI-Congo) monopoly offering below-market prices for diamonds, the Democratic Republic of Congo received a greater percentage of diamond revenues than before the monopoly was in place.
An indirect consequence of the monopoly's below-market prices for diamonds, was the increase in diamond smuggling through Brazzaville.
In April 2002 Emaxon Finance Corp, an unknown newly created (2001) Canadian subsidiary of the Dan Gertler International (DGI), secretly signed a contract through which he gained a four-year right to market 88% of the state-owned Societe Miniere de Bakwanga, MIBA's, rough-diamond production, about a quarter of the DRC's legitimate diamond exports at around 600,000 carats a month. Emaxon also had a 5 percent discount on its purchase of MIBA diamonds which were usually sold in the free market to the highest bidder. Emaxon lent MIBA $15 million to modernize its mining equipment.
In 2001 Emaxon Finance International Inc was established in Canada as a subsidiary of the Dan Gertler International (DGI) International Development Research Centre reported that following the IPIS publication and according to the Quebec trade register, Dan Gertler and his company, Dan Gertler Diamonds (page 5), run Emaxon.
=Congo Diamond Trade Allegations=
There were allegations that Gertler's $20 million deal with Kabila a reciprocal agreement to arrange arms shipments from Israel to the DRC.
Dan Gertler's Partnerships
Dan Gertler is a partner with Glencore International Plc., the largest company in Switzerland and the world's largest commodities trading company. One of their mines is Mutanda.
In June 2007, Glencore and partner Dan Gertler, an Israeli mining magnate, paid GBP300 million for a quarter-stake in mining company Nikanor, which was seeking to revive derelict copper mines next to Katanga Mining's properties. That deal gave Glencore exclusive rights to sell all Nikanor's output -- an 'offtake' agreement.... [Then, o]n Christmas Eve 2008, ... [having] lost 97 percent of its market value over the previous six months ... in the depths of the global financial crisis and ... running out of cash, Katanga accepted a lifeline it could not refuse. [Glencore] wanted control. For about US$500 million in a convertible loan and rights issue, Katanga agreed to issue more than a billion new shares and hand what would become a stake of 74 percent to Glencore. ... [By early 2011], with copper prices regularly setting records above US$10,000 a ton, Katanga's stock market value [had reached] nearly US$3.2 billion.... [Since the Glencore acquisition], Katanga ... is reaping the benefit of the surging markets and its wealthy, powerful owner. After losing US$108 million in 2009, it posted an annual profit of US$265 million in 2010.
In the course of the Congo events, Nikanor was merged into Katanga in late 2007 in a transaction valued at US$3.3 billion.
Source @ Wikipedia
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