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The Kolwezi Commercial Court faces a major challenge to ensure justice in fairness in the case opposing Gécamines and KCC

AFREWATCH, a nongovernmental organisation working for the advancement of human rights in the natural resources sector in Africa is concerned by the information revealed by Gécamines (GCM) regarding an over-indebtedness strategy of the KCC mining project[1] that may have been put in place by the Katanga Mining Ltd[2], a subsidiary of Glencore[3] for over 10 years. 

On April 20 2018, Gécamines brought Kamoto Copper Company SA (KCC) and its majority shareholders leaded by Glencore before the Commercial Court of Kolwezi; Gécamines requests the dissolution of KCC on the basis of a non-reconstitution of its own capital within a permitted term. The first hearing will take place on May 8 2018.  

On April 22 2018, KCC reacted to the news to reassure its partners and workers, but without providing details, pretending that it has sufficient means to face its financial situation.

For its part, on April 24 2018, Gécamines revealed that for ten years one of the main companies is over-indebted; this situation could have negative effects on the DRC.

AFREWATCH believes that if the Court confirms Gécamines allegations, then these are grave. 

AFREWATCH recommends the Commercial Court of Kolwezi to use all relevant Congolese legal instruments to handle the case with complete independence and to update the public on this matter. Meanwhile AFREWATCH recommend KCC to release its financial statements in order to manifest its good will, and Glencore to take urgent measures for the purpose of solving this matter by cancelling a part of the debt of KCC and by reducing the interest rate of the remainder.  

                               

AFREWATCH

Lubumbashi, April 26 2018

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[2] Katanga Mining Ltd is a mining company operating in the Democratic Republic of Congo and headquartered in Canada; it exploits a large mining site in the province of Lualaba in the DRC.    

[3] Glencore an accronym for Global Energy Commodity Resources is an anglo-swiss multinational company headquarted in Switzerland