Gécamines and ENRC Africa Holdings have completed a transaction that sets the foundations for a redefined collaboration within their JV Boss Mining.
The transaction in particular comprises:
- The increase of Gécamines’ stake in Boss Mining, brought from 30% to 49%, ENRC’s stake being reduced from 70% to 51%
- The restoration of Boss Mining’s negative equity situation, in accordance with the laws applicable
- The annulment of Boss Mining’s financial indebtedness towards the ENRC group, through the conversion into equity of the outstanding amount of the intragroup loans granted by the ENRC group to Boss Mining, of an amount of more than US$1.5 billion
- The elaboration of a restructuring plan of Boss Mining’s activities, in order to increase its long-term economic sustainability
- The restructuring of Boss Mining’s subcontracting policy
- A revaluation, for the future, of the deposits and minerals transferred by Gécamines to Boss Mining, by raising the amount of the pas de porte payable by ENRC to increased from US$35 per ton of copper, to US$165 per ton of copper and copper equivalent, identified, in accordance with JORC standards, above an agreed threshold
- The parties’ mutual withdrawal from the arbitration proceeding initiated by Gécamines against ENRC and Boss Mining before the International Chamber of Commerce, the extinction of Gécamines’ claims regarding the situation of Boss Mining’s negative equity, and the payment by ENRC to Gécamines of a settlement indemnity of a total amount of US$30 million; and
- The elaboration of a detailed business plan allowing for a close monitoring of the returns excepted by the parties involved, as dividends to be distributed to the shareholders, and beneficiary results that should trigger the payment of taxes to the State.
Gécamines welcomes this new achievement, as part of its strategy of consensual
redefinition of its partnerships, aiming at reaching a better sharing of the revenues and returns for Gécamines, as well as for the Democratic Republic of the Congo and the impacted communities.