ENRC draws fire for attempt to 'clean up' its Congo holdings - Business News - Business - The Independent

ENRC draws fire for attempt to 'clean up' its Congo holdings

A move by the controversial mining giant ENRC to severe its joint-venture ties with Dan Gertler, the Israeli diamond billionaire, has run into immediate criticism from governance watchdogs.

In what is being seen as an attempt to assuage widespread criticism of the way ENRC has bought assets from Mr Gertler, the company yesterday confirmed that it had struck a deal to buy the remaining 49.5 per cent stake in their copper and cobalt joint venture in the Democratic Republic of Congo for $550m.

This follows the International Monetary Fund's decision last week to freeze loans to Congo over concerns about the way a company associated with Mr Gertler acquired mining rights from the government of President Joseph Kabila.

While the deal will arguably clean up ENRC's reputation in the country, it still apparently sees Mr Gertler profit handsomely from the Kolwezi mine's copper and cobalt.

Global Witness - the NGO which has been heavily critical of Mr Gertler's involvement in Congo's mining asset sales, arguing that he has been given them on the cheap by the government of his friend Mr Kabila – said it deplored the deal.

A spokesman said: "We oppose this strongly. It carries with it a very significant risk of corruption. This is exactly the kind of deal we have been complaining about."

ENRC bought its original 50.5 per cent stake in the assets from Mr Gertler in 2010, paying just $50m with the promise of a further $125m to come.

Analysts at Deutsche Bank said the latest price paid to Mr Gertler looked "high", and that there was still not enough information from the company to establish whether or not it was a good deal.

ENRC's chairman Mehmet Dalman, who has been trying to clean up the image of the company's Congo operations, said: "This transaction is an integral part of the corporate governance and company structure optimisation that I set as a key priority when I assumed chairmanship."

The commodities giant Glencore, which also has significant dealings with Mr Gertler in Congo and is a co-owner on a number of projects with him, said it had not given him money for assets, instead co-operating and making loans to mining projects in which they were partners. It declined to comment on ENRC's latest move.

Mr Gertler gave a revealing interview last week to Bloomberg Markets Magazine in which he claimed he deserved a Nobel Prize for his work attracting investors to Congo.

ENRC said last night its business relationship with Mr Gertler had been "productive".

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
Arts and Entertainment
Emma Thompson and Bryn Terfel are bringing Sweeney Todd: The Demon Barber of Fleet Street to the London Coliseum
theatre

Returning to the stage after 20 years makes actress feel 'nauseous'

News
peopleThe Times of India said actress should treat it as a 'compliment'
PROMOTED VIDEO
News
news

Commuter travels 320 metres, 75 steps, two ticket barriers and a labyrinth of roads to get to work
Property
Home body: Badger stays safe indoors
lifeShould we feel guilty about keeping cats inside?
News
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK edition of wedding show forced to recast after wave of drop-outs
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Student
The Guildhall School of Music and Drama is to offer a BA degree in Performance and Creative Enterprise
student

Top conservatoire offers ‘groundbreaking’ arts degree

Sport
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Voices
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Consultant - Soho - IT, Pharma, Public Sector

£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...

Sales Executive

£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

Payroll & Accounts Assistant

£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week