Tremalt
Encyclopedia
Tremalt Limited was a mining company incorporated in the Democratic Republic of the Congo
(DRC). It was the vehicle for a highly criticized deal in 2001 in which it bought copper assets at far below their estimated value in return for a private agreement to pay a share of profits to the DRC and Zimbabwe governments. Allegedly some of the payments were made in the form of military equipment. The company made few investments in its assets, several of which the DRC government took back.
In 2006 it was sold for about $60m.
Tremalt, controlled by John Bredenkamp
, held 80% of KMC while Gecamines held 20%
A network of private holding companies and trusts registered in the Isle of Man and the British Virgin Islands concealed the true owners of Tremalt.
KMC gained the rights to mines, facilities and concentrators at Kambove
and Kakanda.
KMC made relatively low investment in these properties, continuing to operate the already-functioning Kamoya Mine but not opening the others.
In March 2002 the DRC authorities took back control of the Kambove concentrator from Tremalt following a complaint by the manager of KMC against Gecamines at the International Centre for the Settlement of Investment Disputes.
In its 2003 year end report KMC claimed a cumulative loss of over USD$11 million in the first three years.
published the Final report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo.
The report named Brigadier General Sibusiso Busi Moyo and Air Commodore Mike Tichafa Karakadzai
as key players in arranging the KMC deal with Tremalt.
According to the report, Tremalt had paid $400,000 for the rights to exploit six Gecamines concessions that held a total of 2.7 million tons of copper and 325,000 tons of cobalt. These concessions had an estimated value of over $1 billion.
In a private agreement, net profits would be divided 32% to Tremalt, 34% to the DRC government and 34% to the Zimbabwe government. Tremalt undertook to supply military vehicles and cash in lieu of the profit share payments.
John Bredenkamp sold Tremalt for about $60m to the Israeli-American businessman Dan Gertler
in 2006.
In 2007 Tremalt was owned by Prairie International Ltd, of which Dan Gertler’s family trust was a major shareholder.
Tremalt owned 80% of Savannah Mining, which held concessions C17 and C18 in Katanga Province and 50% of the Mukondo
project. The other 50% of Mukonda was held by BOSS Mining, which in turn was 80% owned by Central African Mining & Exploration Company (CAMEC).
There were plans to combine the Mukondo assets into a new holding company. Billy Rautenbach
, a Zimbabwean who had formed BOSS and now owned a share of CAMEC, would be excluded from ownership in the new company due to the hostile relations that had developed between him and the DRC government.
The MOU to complete the deal was signed between CAMEC and Prairie International in November 2007.
Democratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
(DRC). It was the vehicle for a highly criticized deal in 2001 in which it bought copper assets at far below their estimated value in return for a private agreement to pay a share of profits to the DRC and Zimbabwe governments. Allegedly some of the payments were made in the form of military equipment. The company made few investments in its assets, several of which the DRC government took back.
In 2006 it was sold for about $60m.
KMC acquisition
In January 2001 the Kababancola Mining Company (KMC) was established as a copper and cobalt mining partnership for a 25-year term.Tremalt, controlled by John Bredenkamp
John Bredenkamp
John Arnold Bredenkamp is a Zimbabwean businessman and former rugby player. He is the founder of the Casalee Group.-Early life:...
, held 80% of KMC while Gecamines held 20%
A network of private holding companies and trusts registered in the Isle of Man and the British Virgin Islands concealed the true owners of Tremalt.
KMC gained the rights to mines, facilities and concentrators at Kambove
Kambove mines
The Kambove mines are a group of active or abandoned copper mines near Kambove in the Democratic Republic of the Congo.Inactive mines in the region include Kabolela Mine, Kakanda deposit, Kambove Principal Mine and M'sesa Mine....
and Kakanda.
KMC made relatively low investment in these properties, continuing to operate the already-functioning Kamoya Mine but not opening the others.
In March 2002 the DRC authorities took back control of the Kambove concentrator from Tremalt following a complaint by the manager of KMC against Gecamines at the International Centre for the Settlement of Investment Disputes.
In its 2003 year end report KMC claimed a cumulative loss of over USD$11 million in the first three years.
United Nations investigation
In October 2002 the United NationsUnited Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
published the Final report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo.
The report named Brigadier General Sibusiso Busi Moyo and Air Commodore Mike Tichafa Karakadzai
Mike Tichafa Karakadzai
Air Commodore Mike Tichafa Karakadzai is a former senior officer in the military of Zimbabwe. Europe, and more recently Australia, have frozen his assets and forbidden his travel in their territories....
as key players in arranging the KMC deal with Tremalt.
According to the report, Tremalt had paid $400,000 for the rights to exploit six Gecamines concessions that held a total of 2.7 million tons of copper and 325,000 tons of cobalt. These concessions had an estimated value of over $1 billion.
In a private agreement, net profits would be divided 32% to Tremalt, 34% to the DRC government and 34% to the Zimbabwe government. Tremalt undertook to supply military vehicles and cash in lieu of the profit share payments.
Subsequent history
The UK-based NGO Rights and Accountability in Development brought a case against Tremalt alleging illegal resource exploitation. However, the UK National Contact Point for the OECD blocked the case, saying it had been resolved by the United Nations panel. In June 2004 RAID withdrew the case.John Bredenkamp sold Tremalt for about $60m to the Israeli-American businessman Dan Gertler
Dan Gertler
Dan Gertler is an Israeli businessman, the founder and President of the DGI Group of Companies. He has large interests in diamonds and copper mining in the Democratic Republic of the Congo .-Background:...
in 2006.
In 2007 Tremalt was owned by Prairie International Ltd, of which Dan Gertler’s family trust was a major shareholder.
Tremalt owned 80% of Savannah Mining, which held concessions C17 and C18 in Katanga Province and 50% of the Mukondo
Mukondo Mine
Mukondo Mine is a copper and cobalt mine in Katanga Province, Democratic Republic of the Congo. As of 2011 it was operated by the Central African Mining and Exploration Company...
project. The other 50% of Mukonda was held by BOSS Mining, which in turn was 80% owned by Central African Mining & Exploration Company (CAMEC).
There were plans to combine the Mukondo assets into a new holding company. Billy Rautenbach
Billy Rautenbach
Billy Rautenbach, also known as Muller Conrad Rautenbach , is a multimillionaire Zimbabwean businessman. He is known for his aggressive business tactics and is believed to have close links to ZANU-PF and the government of Robert Mugabe...
, a Zimbabwean who had formed BOSS and now owned a share of CAMEC, would be excluded from ownership in the new company due to the hostile relations that had developed between him and the DRC government.
The MOU to complete the deal was signed between CAMEC and Prairie International in November 2007.