Glencore PLC KATANGA UPDATE ON KCC RECAPITALISATION PROCESS (7081L)

TIDMGLEN

RNS Number : 7081L

Glencore PLC

23 April 2018

Glencore plc

Baar, Switzerland

22 April, 2018

KATANGA MINING PROVIDES UPDATE ON KCC RECAPITALISATION PROCESS AND NOTES COMMENCEMENT OF DRC LEGAL PROCEEDINGS BY GÉCAMINES

Glencore refers to the announcement by Katanga Mining Limited ("Katanga") in which it announced that Katanga's Democratic Republic of the Congo ("DRC") state-owned joint venture partner, La Générale des Carrières et des Mines ("Gécamines"), in Katanga's 75% DRC operating subsidiary Kamoto Copper Company ("KCC"), has commenced legal proceedings in the DRC to dissolve KCC following KCC's failure to address its capital deficiency or, alternatively, if the Court provides KCC with a period of time within which to regularize the situation, to request the appointment of an expert to assess and report to the Court on KCC's financial position and recapitalisation plan.

Katanga believes that it has several options to remedy KCC's capital deficiency and avoid KCC's dissolution. Katanga will continue to attempt to engage in discussions with Gécamines and will take all other necessary steps to ensure the continuation of the operations of KCC and protect its rights under the law and under its joint venture agreement with Gécamines.

Katanga is continuing to assess options for regularising the capital deficiency, including the conversion of a portion of existing intercompany debt owed by KCC to Katanga (which is eliminated on consolidation) into equity or forgiving a portion of such debt. Any such outcome would impact the distribution of future cash flows earned by KCC, which might in turn have a materially adverse impact on Katanga but would not be expected to have a material impact on the assets, liabilities and net assets of Katanga and would be expected only to result in a shift within equity attributable to shareholders and non-controlling interests. The regularisation of the capital deficiency can be effected by Katanga on its own initiative or through negotiation with Gécamines.

If Katanga has taken the necessary steps to regularise KCC's capital deficiency and this is confirmed by KCC's statutory auditor on or before the day on which the court renders its judgment on the merits, then the DRC court cannot issue a dissolution order.

The full Katanga announcement is available at:

http://www.katangamining.com/media/news-releases/2018.aspx.

For further information please contact:

 
Media 
Charles Watenphul  t: [phone]  m: [phone]  [e-mail] 
Investors 
Martin Fewings     t: [phone]   m: [phone]   [e-mail] 
Ash Lazenby        t: [phone]   m: [phone]   [e-mail] 
 
 
 

www.glencore.com

Glencore LEI: 2138002658CPO9NBH955

This announcement contains inside information.

Notes for Editors

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 146,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.

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April 23, 2018 02:01 ET (06:01 GMT)