Nikanor Plc

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Nikanor Plc
Public holding company
Fate Merged into Katanga Mining Limited
Founded July 2006 (17 years ago) (2006-07) (Douglas, Isle of Man)
Founder Dan Gertler
Defunct July 2008 (15 years ago) (2008-07)
Headquarters Douglas, Isle of Man
Number of locations
 Katanga Province, Democratic Republic of the Congo
Area served
 Democratic Republic of the Congo
Key people
 Dan Gertler
CEO Jonathan Leslie
[1]
Total assets US$452 million (2008)
Owner Dan Gertler

Nikanor Plc [2] was a publicly quoted holding company for Global Enterprises Corporate (GEC) with assets in the rich Copper Belt region in Katanga Province, Democratic Republic of the Congo.

Nikanor Plc was incorporated in 2006 with its registered head office in Douglas, Isle of Man. Nikanor's stock was listed on the London Stock Exchange's Alternative Investment Market in London in July 2006. The initial public offering raised $400 million, and Nikanor's market capitalization reached $1.5 billion.[2]

Emile Mota, President Joseph Kabila's former chief of staff, and Simon Tuma-Waku were on the senior management team of Nikanor. Tuma-Waku was Minister of Mines and Energy under President Joseph Kabila, who promulgated the new mining code in 2002. (Mining Journal 2008).[3]

In May 2007, Beny Steinmetz, Dan Gertler and the Gertner Group, Nikanor's three main stakeholders, launched a hostile take over bid for Nikanor, which valued Nikanor's shares at £6.00, the price when it floated. was presented by the Cosaf Ltd consortium,[notes 1] (which also includes the Swiss trader and Gertler's long-time associate, Glencore International AG and UK equity fund, RP Capital Partners) [notes 2] presented the bid which was opposed by those shareholders in Nikanor not involved in the bid. (Mining Journal 2008)."[3]

In January 2008, Nikanor was merged into Katanga Mining Limited.[notes 3] Katanga paid US$452 million in cash to Nikanor shareholders.[4] Nikanor planned on participating in the consolidation of the companies operating in the Zambian-Democratic Republic of Congo copperbelt region. In January 2008 Katanga Mining Company (KMC) acquired Nikanor PLC for $452m.[4]

In a 2011 article by Reuters, journalists described how Glencore and Dan Gertler partnered in Nikanor from 2007 until its final merger with Katanga Mining.[5]

In June 2007, "Glencore and partner Dan Gertler, an Israeli mining magnate, paid GB£300 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."

[5]

Timeline summary of transactions

  • October 7, 1996 New Inca Gold Ltd corporation was incorporated under the Laws of Bermuda (KML Annual Report 2011:3).[6]
  • March 2004 Dan Gertler,[2] a diamond dealer and close friend of DRC president Joseph Kabila, of Dan Gertler International in partnership with Beny Steinmetz Global founded a firm named Global Enterprises Corporate (GEC), which engages in copper/cobalt refining activities.[7]
  • May 5, 2004 Global Enterprises Corporate signed a preliminary agreement with the Democratic Republic of Congo (DRC) state-owned copper-cobalt a parastata la Générale des Carrières et des Mines Gécamines.
  • September 9, 2004 Global Enterprises Corporate signed a joint-venture (JV) agreement with the state-owned Gécamines [8] to rehabilitate and operate the Kananga and Tilwezembe mines. The deal was ratified by Joseph Kabila's presidential decree.[2] The final joint-venture structure was held 75% by Global Enterprises Corporate and 25% by Gécamines, with GEC undertaking to invest $300–$400m in a new leaching plant, with projected output to reach 200,000 tons of copper a year.
  • 2005 Bloomberg Business Week reported that Global Enterprises Corporate Limited was founded in 2005 and was based in the British Virgin Islands. Bloomberg did provide any of the usual data regarding Board Members, Committees, Relationships, Primary Company, etc.[7]
  • 2004 KFL and Gécamines, a DRC state-owned mining company, entered into the ... in which KFL holds a 75% stake and Gécamines a 25% stake, was formed in 2005 to ... Nikanor, through its GEC subsidiary, entered into a joint venture agreement in ...
  • Summer 2005 Gécamines granted management of SX-EW refining plant at Luilu, the only refining plant in the region, to George Forrest's Kinross-Forrest subsidiary.
  • September 2005 Global Enterprises Corporate and George Forrest's Kinross-Forrest subsidiary reached an agreement to share the refinery. It was rumored that Gertler had used pressure from Kabila to obtain the concession.[2]
  • July 8, 2004 New Inca Gold Ltd Corporation consolidated its common shares on a ten-for-one basis and changed its name to Balloch Resources Ltd (KML Annual Report 2011:3).[6]
  • November 30, 2005 Balloch Resources Ltd Corporation (formerly New Inca Gold Ltd) changed its name to Katanga Mining Limited (KML Annual Report 2011:3).[6]
  • July 17, 2006 Global Enterprises Corporate Ltd. became a subsidiary of Katanga Mining Limited.[7]
  • Global Enterprises Corporate Ltd. and Gécamines formed a subsidiary named DRC Copper and Cobalt Project (DCP), 75% owned by Global Enterprises Corporate Ltd. and 25% by Gécamines.
  • 2006 Exploitation permits for the assets were transferred to the two company's subsidiary DRC Copper and Cobalt Project (DCP).
  • Gertler and Steinmetz placed Global Enterprises Corporate Ltd's 75% share in KOV (Komoto Oliveira Virgule), an open cast copper-cobalt project including the Tilwezembe and Kananga deposits and the Kolwesi concentrator, into Nikanor Plc., registered in the Isle of Man.
  • July 2006 Nikanor Plc was incorporated with its registered head office in Douglas, United Kingdom. Nikanor's stock was listed on the LSE's Alternative Investment Market in London. The IPO raised $400 million, and Nikanor's market capitalization reached $1.5 billion.[2]
  • February 2007 Proactive mining entrepreneur, Moise Katumbi, was elected governor of Katanga Province in February 2007. [notes 4]
  • April 2007 capital expenditure on stage one of the KOV project was estimated at $1.6 billion, and total required funding was estimated at $1.8 billion. By this time the company's market capitalization had fallen to £517m.[2]
  • February 2007, Katanga Mining Company (KMC) also signed a "US$30 million sub-contracting agreement with Nikanor plc, the company that operates the KOV project (see below), for the construction of a plant to process copper and cobalt (Mining Journal 2008)."[3]
  • 2007 Bateman Engineering's feasibility study showed that "the overall cost of rehabilitating KOV (including the building of a new processing plant at Luilu, work on the Kananga and Tilwezembe prospects and restoration of the concentrator at Kolwezi) has grown from US$1.3 billion to US$1.6 billion (Mining Journal 2008)."[3]".
  • May 2007 An extraordinary meeting of Nikanor shareholders was proposed "to examined a proposal to raise between US$450-US$650 million."
  • May 2007 Beny Steinmetz, Dan Gertler and the Gertner Group, Nikanor's three main stakeholders, launched a hostile take over bid for Nikanor, which valued Nikanor's shares at £6.00, the price when it floated. was presented by the Cosaf Ltd consortium, (which also includes the Swiss trader and Gertler's long-time associate, Glencore International AG and UK equity fund, RP Capital Partners) presented the bid which was opposed by those shareholders in Nikanor not involved in the bid. (Mining Journal 2008)."[3]
  • June 1, 2007 Nikanor announced a placement, "structured and managed by RP Capital, to raise £372 million. The placing was partially subscribed by Ruwenzori Ltd, a special purpose vehicle (SPV) established by RP Capital. If Cosaf`s bid succeeds, it is anticipated that Cosaf will delist Nikanor in order to find financing (Mining Journal 2008)."[3]
  • June 2007 Nikanor's stock fell following the announcement that it would issue 62-million new shares to raise £372-million, or R5,2-billion towards developing its KOV mine [notes 5]
  • June 2007 Nikanor announced that Glencore would purchase half of the new 62-million shares issued. As well Glencore agreed to buy the entire copper and cobalt production at its DRC project (Hill 1 June 2007 Mining Weekly).[9]
  • January 2008 Katanga Mining Company (KMC) acquired Nikanor PLC for $452m.[4]
  • February 2008 It was confirmed that Katanga Mining was selling Dikuluwe and Mashamba West to Gécamines for $825 million.[10] There had been speculation since Katanga Mine took over Nikanor Plc that the Dikuluwe and Mashamba West deposits were being transferred to Gécamines, and would be exploited by a joint venture owned 32% by Gécamines and 68% by a Chinese consortium.[11]

Nikanor Plc and DRC Copper and Cobalt Project (DCP)

On September 9, 2004, Global Enterprises Corporate signed a joint-venture (JV) agreement with the state-owned Gécamines [8] to rehabilitate and operate the Kananga and Tilwezembe mines. The deal was ratified by Joseph Kabila's presidential decree.[2] The final joint-venture structure was held 75% by Global Enterprises Corporate and 25% by Gécamines, with GEC undertaking to invest $300–$400m in a new leaching plant, with projected output to reach 200,000 tons of copper a year, based on its interests in the huge KOV (Komoto Oliveira Virgule) (Sergeant April 4, 2007)." [1] The DRC Copper and Cobalt Project (DCP), Katanga Mining Ltd: Toronto (TSX:KML) Glencore: London (LSE:GLEN) properties were located next to Katanga Mining's properties near Kolwezi.[4] Global Enterprises Corporate Ltd. and Gécamines formed a subsidiary named DRC Copper and Cobalt Project (DCP), 75% owned by Global Enterprises Corporate Ltd. and 25% by Gécamines.

Nikanor Plc and KOV (Komoto Oliveira Virgule)

KOV (Komoto Oliveira Virgule) is a "massive open cast copper-cobalt project comprising the world-class assets Tilwezembe and Kananga deposits and the Kolwesi concentrator in the DRC's Katanga province (Sergeant April 4, 2007)." [1] In 2006 exploitation permits for the assets were transferred to the two company's subsidiary DRC Copper and Cobalt Project (DCP). Gertler and Steinmetz placed Global Enterprises Corporate Ltd's 75% share in KOV (Komoto Oliveira Virgule), an open cast copper-cobalt project including the Tilwezembe and Kananga deposits and the Kolwesi concentrator, into Nikanor Plc., registered in the Isle of Man.

Nikanor and Katanga Mining Limited

In January 2008 Nikanor was merged into Katanga Mining Limited. Katanga Mining Limited TSX:KAT operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt with the "potential of becoming Africa's largest copper producer and the world's largest cobalt producer (Katanga Mining February 11, 2009 [12] Katanga paid US$452 million in cash to Nikanor shareholders.[4] Nikanor planned on participating in the consolidation of the companies operating in the Zambian-Democratic Republic of Congo copperbelt region. In January 2008 Katanga Mining Company (KMC) acquired Nikanor PLC for $452m.[4]

See also

Notes

  1. ↑ Cosaf Limited (Cosa) consortium (which also includes the Swiss trader and Gertler's long-time associate, Glencore International AG, is managed by a subsidiary of RP Capital Partners Cayman Island Limited and owned by family members of Dan Gertler and Ruwenzori Limited (Ruwenzori) which is itself controlled by Cosaf) (Early Warning Report 26 March 2010)
  2. ↑ RP Capital Group, co-founded in 2004 by Rafael Berber and Peter Kellner, specializes in Alternative Investment Management Strategies & Advisory Services. RP Capital established Ruwenzori Ltd in 2007 as a "special purpose vehicle" (SPV) to raise £372 million for Nikanor (Mining Journal 2008). RP Explorer Master Fund (RP Explorer) Cosaf Limited (Cosa)is managed by a subsidiary of RP Capital Partners Cayman Island Limited and owned by family members of Dan Gertler and Ruwenzori Limited (Ruwenzori) which is itself controlled by Cosaf) (Early Warning Report 26 March 2010)
  3. ↑ Katanga Mining Limited TSX:KAT operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt with the "potential of becoming Africa's largest copper producer and the world's largest cobalt producer (Katanga Mining February 11, 2009)."
  4. ↑ Katumba supported President Joseph Kabila and "helped finance his electoral campaign by selling the rights to the Kinsevere copper deposit, held by Moise Katumbi's firm Katanga Mining Company (KMC) to Anvil Mining Ltd (Mining Journal 2008)."
  5. ↑ KOV (Komoto Oliveira Virgule) is a "massive open cast copper-cobalt project comprising the world-class assets Tilwezembe and Kananga deposits and the Kolwesi concentrator in the DRC's Katanga province (Sergeant April 4, 2007)."

References

  1. ↑ 1.0 1.1 1.2 Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ 5.0 5.1 Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ 6.0 6.1 6.2 Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ 7.0 7.1 7.2 Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ 8.0 8.1 Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.

External links

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  • Glencore, official website
  • RP Capital Group Investments, official website
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