Dan Gertler
Encyclopedia
Dan Gertler is an Israeli businessman, the founder and President of the DGI (Dan Gertler International) Group of Companies. He has large interests in diamonds and copper mining in the Democratic Republic of the Congo
(DRC).
He is a grandson of Moshe Schnitzer
, first President of the Israeli Diamond Exchange, who won the Israel Prize
in 2004.
His family was traditionally involved in cutting and merchandising diamonds.
While growing up, Gertler spent as much time as he could learning about the diamond trade from his father and grandfather.
As soon as he had completed his 3-year mandatory service in the Israeli Defense Forces he opened his own diamond business.
Gertler founded the Dan Gertler International (DGI) group of companies in 1996.
The Yedioth Aharonoth weekend supplement on 19 September 1999 asserted that in 1997 Gertler had been involved in financing a program to buy diamonds in Liberia and Sierra Leone in exchange for military training and arms deliveries.
The plan fell apart due to the chaotic political changes and military events in Sierra Leone at that time.
The Israeli arms dealer Yair Klein
, who had been convicted for earlier involvement in Colombia, was charged with arming and training rebels, and was thrown in jail.
Gertler was also involved in trading in Russia and Guinea.
(MIBA), a state-controlled diamond mine operator.
Letters allegedly written early in 1998 by Gertler to the DRC Minister of Mines, Kibassa Maliba, described the capability of Dan Gertler Diamonds (DGD). They said that DGD "owns and operates its own mining, transportation and security equipment, and trains its own personnel". The correspondence discussed a contract to buy rough diamonds worth $2 billion over a period of 24 months.
Gertler's International Diamond Industries (IDI) was eventually awarded an 18-month monopoly on DRC diamond exports in July 2000.
Some reports say Gertler paid $20 million to the dominant Kabila clan in the DRC for a monopoly on exporting Congo diamonds. The deal reportedly included a reciprocal agreement to arrange arms shipments from Israel to the DRC.
Others say that any involvement in an arms deal was highly unlikely after the fiasco in Sierra Leone, and that his family would not have allowed it. It is clear that the DRC President, Laurent-Désiré Kabila
, needed the money to fund his government's struggle against rebels in the Second Congo War
, which lasted from 1998 to 2003, with millions of people dying. Any assistance that Gertler could provide in arranging for arms and training by Israel would have been welcome.
The press picked up on the story, saying Gertler'sdeal included an arrangement for the Israelis to train Congolese security forces in brutal techniques, as they had under Mobutu Sese Seko
, that IDI was buying diamonds from UNITA
and that by paying below the market price IDI was encouraging smuggling into the Republic of Congo (Brazzaville).
In 2004 Yossi Kamisa, who had formerly been an officer in the Israel Police Border Guard Anti-Terrorism Unit, filed a lawsuit against Gertler alleging that in July 2000 he had been hired to train the DRC army as part of Gertner's diamond franchise deal and that he witnessed Gertler bribing Congolese government officials and Angola Army generals hired to protect Kinshasha. Gertner soon after cancelled their verbal contract. Kamisa said he attempted to arrange for the training on his own account, but ran into roadblocks from senior officials. However, he alleged that Gertner subsequently hired other Israeli's who were able to get around the roadblocks.
After Laurent-Désiré Kabila died in January 2001, Gertler briefly lost influence in the Congo, but soon managed to reestablish a relationship with his son and successor Joseph Kabila
.
In April 2002 Emaxon Finance, a Canadian company owned by DGI group, gained a four-year right to market 88% of MIBA's rough-diamond production, about a quarter of the DRC's legitimate diamond exports at around 600,000 carats a month. Emaxon also gained a 5% discount on the diamonds it bought in exchange for lending MIBA $15 million to be used in modernizing its mining equipment.
Gertler became increasingly close to President Joseph Kabila, and was invited to Kabila's wedding in 2006.
By 2009 DGI group was one of the largest wholesale distributors of rough and polished diamonds in the world.
The group spans mining, manufacturing and sales.
, finalized in September that year, to rehabilitate and operate the Kananga
and Tilwezembe copper mines. The deal was ratified by presidential decree.
Gertler and Steinmetz placed GEC'S 75% share in KOV into Nikanor Plc., registered in the Isle of Man.
Nikanor's stock was listed on on the LSE's Alternative Investment Market
in London in July 2006. The IPO raised $400 million, and Nikanor's market capitalization reached $1.5 billion.
In February 2007, 22% of the Nikanor Mining company was owned by the Gertner Family Trust and 14% by Dan Gertler.
In January 2008 Katanga Mining acquired Nikanor PLC for $452m.
In April 2006 Gertler's DGI took a major stake in DEM Mining. a cobalt-copper mining and services company based in Katanga.
In June 2006 Gertler bought Tremalt
, which had a half share in the Mukondo Mine
for about $60m from the Zimbabwean businessman John Bredenkamp
.
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).
Boss Mining had rented and operated Bredenkamp's half of Mukondo. Gertler terminated this arrangement.
Billy Rautenbach
, another Zimbabwe businessman, had formerly owned Boss Mining.
In a February 2006 deal, Rautenbach had gained about 17% of the CAMEC shares when CAMEC bought Boss.
Gertler and CAMEC made plans to combine the Mukondo assets into a new holding company. Billy Rautenbach would be excluded from ownership in the new company due to the hostile relations that had developed between him and the DRC government.
CAMEC and Prairie International signed the MOU to complete the deal in November 2007.
In February 2008 the two companies announced that the Mukondo Mountain operations had restarted.
In July 2008 Anvil Mining
announced that it was selling about C$296 million worth of shares worth to Catala Global in a private placement.
Catela Global, a company owned by Dan Gertler's family trust, would own around 25% of Anvil on completion of the deal.
Despite speculation that Anvil would use the cash infusion for acquisitions, the company insisted it would remain focused on completing its Kinsevere
Stage II project.
In August 2008 the amount to be paid was lowered to about C$237 million due to "the significant deterioration in market conditions for resource companies".
Camrose Resources Ltd, a Gertler family trust company, purchased s 62.5% share of Africo Resources
in 2008.
The next February, Africo confirmed that it had the go ahead from the DRC government for 75%-owned Kalukundi
project.
to operate the Kolwezi copper tailings project. First Quantum appealed the decision. The CEO Philip Pascal said "the activities on the legal side come from a small and very influential group of individuals in the Congo and don't necessarily mirror the sentiments of a number of other authorities".
Later the government also expropriated the Frontier
and Lonshi
mines from First Quantum.
In March 2011 the state-owned Sodimico
sold its 30% stake in these two mines for $30 million to two companies registered in the British Virgin Islands. The total estimated value of the mines was over $1.6 billion.
In June 2010 the Financial Post
of Canada reported that Highwind Properties, a company registered in the British Virgin Islands, now owned the Kolwezi project. The newspaper, citing unnamed sources, linked the company to Dan Gertler.
In August 2010 ENRC, a company listed in London with most of its operations in Kazakhstan, said it was buying indirect control of the Kolwezi licence from Dan Gertler.
ENRC was buying 50.5% of Camrose from Gertler. Camrose's key asset was a 70% interest in the Kolwezi project.
The Kolwezi property was sold to Gertler for $20 million. He in turn sold 50.5% of Camrose to ENRC for $175 million.
In April 2011 a British MP called for an investigation of the transaction under the Bribery Act.
In July 2011 Fleurette Properties, owned by Dan Gertler, settled a claim over having missed paying in full an installment on an $8 million debt after flooding at the Kipushi
copper and zinc mine in the DRC. The mine has been out of operation since 1993, but there are plans to bring it back into production. An electricity problem caused the pumps to fail and the mine to flood in November 2010, and emergency measures had to be taken to drain the mine.
In September 2011 the International Monetary Fund
asked for explanations from Sodimico and Gecamines, both state owned mining companies, of sales of assets below market value and without publicity. At the time, the IMF was providing loans to the DRC worth $561 million to improve the economy. Gecamines sold its 20% share of the Mutanda
project, worth an estimated $600 million, for $137 million.
The buyer was Rowny Assets, a company registered in the British Virgin Islands and "associated" with Gertler.
Gecamines sold its 25% percent share in the neighboring Kansuki copper and cobalt project to another British Virgin Islands entity associated with Gertler for an undisclosed price. Kansuki was said to potentially be a larger producer than Mutanda.
Analysts criticized lack of transparency in the disposal of key assets by Gecamines, which the government was preparing for sale to private investors.
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).
Background
Dan Gertler was born in December 1973.He is a grandson of Moshe Schnitzer
Moshe Schnitzer
Moshe Schnitzer was a Romanian immigrant to Israel who became a key player in the international diamond trade.From 1967 to 1993 he was President of the Israel Diamond Exchange , which became the world's largest diamond exchange....
, first President of the Israeli Diamond Exchange, who won the Israel Prize
Israel Prize
The Israel Prize is an award handed out by the State of Israel and is largely regarded as the state's highest honor. It is presented annually, on Israeli Independence Day, in a state ceremony in Jerusalem, in the presence of the President, the Prime Minister, the Knesset chairperson, and the...
in 2004.
His family was traditionally involved in cutting and merchandising diamonds.
While growing up, Gertler spent as much time as he could learning about the diamond trade from his father and grandfather.
As soon as he had completed his 3-year mandatory service in the Israeli Defense Forces he opened his own diamond business.
Gertler founded the Dan Gertler International (DGI) group of companies in 1996.
The Yedioth Aharonoth weekend supplement on 19 September 1999 asserted that in 1997 Gertler had been involved in financing a program to buy diamonds in Liberia and Sierra Leone in exchange for military training and arms deliveries.
The plan fell apart due to the chaotic political changes and military events in Sierra Leone at that time.
The Israeli arms dealer Yair Klein
Yair Klein
Yair Klein is a former lieutenant colonel in the Israeli army, who established a private mercenary company called Spearhead Ltd.Through Spearhead Ltd, Klein provided arms and training to armed forces in South America, Lebanon, and Sierra Leone....
, who had been convicted for earlier involvement in Colombia, was charged with arming and training rebels, and was thrown in jail.
Gertler was also involved in trading in Russia and Guinea.
Congo diamond trade
After gaining experience with purchasing and marketing artisanally mined diamonds from the DRC, Gertler started negotiations to establish a partnership with the Societé Minière de BakwangaSocieté minière de Bakwanga
Societé minière de Bakwanga is a mining company based in the Democratic Republic of the Congo. MIBA is a diamond mining company, and its operations are centered near Mbuji Mayi, in Kasai-Oriental Province in south central DRC....
(MIBA), a state-controlled diamond mine operator.
Letters allegedly written early in 1998 by Gertler to the DRC Minister of Mines, Kibassa Maliba, described the capability of Dan Gertler Diamonds (DGD). They said that DGD "owns and operates its own mining, transportation and security equipment, and trains its own personnel". The correspondence discussed a contract to buy rough diamonds worth $2 billion over a period of 24 months.
Gertler's International Diamond Industries (IDI) was eventually awarded an 18-month monopoly on DRC diamond exports in July 2000.
Some reports say Gertler paid $20 million to the dominant Kabila clan in the DRC for a monopoly on exporting Congo diamonds. The deal reportedly included a reciprocal agreement to arrange arms shipments from Israel to the DRC.
Others say that any involvement in an arms deal was highly unlikely after the fiasco in Sierra Leone, and that his family would not have allowed it. It is clear that the DRC President, Laurent-Désiré Kabila
Laurent-Désiré Kabila
Laurent-Désiré Kabila was President of the Democratic Republic of the Congo from May 17, 1997, when he overthrew Mobutu Sese Seko, until his assassination by his bodyguards on January 18, 2001...
, needed the money to fund his government's struggle against rebels in the Second Congo War
Second Congo War
The Second Congo War, also known as Coltan War and the Great War of Africa, began in August 1998 in the Democratic Republic of the Congo , and officially ended in July 2003 when the Transitional Government of the Democratic Republic of the Congo took power; however, hostilities continue to this...
, which lasted from 1998 to 2003, with millions of people dying. Any assistance that Gertler could provide in arranging for arms and training by Israel would have been welcome.
The press picked up on the story, saying Gertler'sdeal included an arrangement for the Israelis to train Congolese security forces in brutal techniques, as they had under Mobutu Sese Seko
Mobutu Sese Seko
Mobutu Sese Seko Nkuku Ngbendu wa Za Banga , commonly known as Mobutu or Mobutu Sese Seko , born Joseph-Désiré Mobutu, was the President of the Democratic Republic of the Congo from 1965 to 1997...
, that IDI was buying diamonds from UNITA
UNITA
The National Union for the Total Independence of Angola is the second-largest political party in Angola. Founded in 1966, UNITA fought with the Popular Movement for the Liberation of Angola in the Angolan War for Independence and then against the MPLA in the ensuing civil war .The war was one...
and that by paying below the market price IDI was encouraging smuggling into the Republic of Congo (Brazzaville).
In 2004 Yossi Kamisa, who had formerly been an officer in the Israel Police Border Guard Anti-Terrorism Unit, filed a lawsuit against Gertler alleging that in July 2000 he had been hired to train the DRC army as part of Gertner's diamond franchise deal and that he witnessed Gertler bribing Congolese government officials and Angola Army generals hired to protect Kinshasha. Gertner soon after cancelled their verbal contract. Kamisa said he attempted to arrange for the training on his own account, but ran into roadblocks from senior officials. However, he alleged that Gertner subsequently hired other Israeli's who were able to get around the roadblocks.
After Laurent-Désiré Kabila died in January 2001, Gertler briefly lost influence in the Congo, but soon managed to reestablish a relationship with his son and successor Joseph Kabila
Joseph Kabila
Joseph Kabila Kabange is a Congolese politician who has been President of the Democratic Republic of the Congo since January 2001. He took office ten days after the assassination of his father, President Laurent-Désiré Kabila...
.
In April 2002 Emaxon Finance, a Canadian company owned by DGI group, gained a four-year right to market 88% of MIBA's rough-diamond production, about a quarter of the DRC's legitimate diamond exports at around 600,000 carats a month. Emaxon also gained a 5% discount on the diamonds it bought in exchange for lending MIBA $15 million to be used in modernizing its mining equipment.
Gertler became increasingly close to President Joseph Kabila, and was invited to Kabila's wedding in 2006.
By 2009 DGI group was one of the largest wholesale distributors of rough and polished diamonds in the world.
The group spans mining, manufacturing and sales.
Early copper mining activity
In March 2004, Dan Gertler International in partnership with Beny Steinmetz Global founded a firm named Global Enterprises Corporate (GEC). In May 2004 GEC signed a preliminary agreement with the state-owned GécaminesGécamines
Gécamines, or La Générale des Carrières et des Mines, is a state-owned mining company in the Democratic Republic of Congo . Its principal products are copper , cobalt and zinc...
, finalized in September that year, to rehabilitate and operate the Kananga
Kananga Mine
The Kananga Mine is an open pit copper mine near Kolwezi in Katanga Province, Democratic Republic of the Congo.-Resources:As of September 2007 it was reported that the mine had not been actively mined since March of that year....
and Tilwezembe copper mines. The deal was ratified by presidential decree.
Gertler and Steinmetz placed GEC'S 75% share in KOV into Nikanor Plc., registered in the Isle of Man.
Nikanor's stock was listed on on the LSE's Alternative Investment Market
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
in London in July 2006. The IPO raised $400 million, and Nikanor's market capitalization reached $1.5 billion.
In February 2007, 22% of the Nikanor Mining company was owned by the Gertner Family Trust and 14% by Dan Gertler.
In January 2008 Katanga Mining acquired Nikanor PLC for $452m.
In April 2006 Gertler's DGI took a major stake in DEM Mining. a cobalt-copper mining and services company based in Katanga.
In June 2006 Gertler bought Tremalt
Tremalt
Tremalt Limited was a mining company incorporated in the Democratic Republic of the Congo . 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...
, which had a half share in the Mukondo Mine
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...
for about $60m from the Zimbabwean businessman 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:...
.
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).
Boss Mining had rented and operated Bredenkamp's half of Mukondo. Gertler terminated this arrangement.
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...
, another Zimbabwe businessman, had formerly owned Boss Mining.
In a February 2006 deal, Rautenbach had gained about 17% of the CAMEC shares when CAMEC bought Boss.
Gertler and CAMEC made plans to combine the Mukondo assets into a new holding company. Billy Rautenbach would be excluded from ownership in the new company due to the hostile relations that had developed between him and the DRC government.
CAMEC and Prairie International signed the MOU to complete the deal in November 2007.
In February 2008 the two companies announced that the Mukondo Mountain operations had restarted.
In July 2008 Anvil Mining
Anvil Mining
Anvil Mining is a copper producer that has been operating in the Democratic Republic of the Congo since 2002.The company headquarters are based in Montreal, Canada.Anvil is listed on the Toronto Stock Exchange and the Australian Stock Exchange....
announced that it was selling about C$296 million worth of shares worth to Catala Global in a private placement.
Catela Global, a company owned by Dan Gertler's family trust, would own around 25% of Anvil on completion of the deal.
Despite speculation that Anvil would use the cash infusion for acquisitions, the company insisted it would remain focused on completing its Kinsevere
Kinsevere
Kinsevere is an open pit mine and Heavy Media Separation plant with an electric arc furnace operated by Anvil Mining.It is located north of Lubumbashi, Katanga Province, Democratic Republic of Congo.Kinsevere is in the Kipushi Territory in Katanga province....
Stage II project.
In August 2008 the amount to be paid was lowered to about C$237 million due to "the significant deterioration in market conditions for resource companies".
Camrose Resources Ltd, a Gertler family trust company, purchased s 62.5% share of Africo Resources
Africo Resources
Africo Resources is a Canadian mining company whose main property is the copper and cobalt Kalukundi Mine in Katanga Province, Democratic Republic of the Congo.-Company profile:...
in 2008.
The next February, Africo confirmed that it had the go ahead from the DRC government for 75%-owned Kalukundi
Kalukundi Mine
Kalukundi Mine is a copper and cobalt mine being developed in Katanga Province, Democratic Republic of the Congo by Africo Resources, a Canadian company...
project.
Later mining activity and controversy
In September 2009 the DRC government revoked the license of Canadian miner First Quantum MineralsFirst Quantum Minerals
First Quantum Minerals Ltd. is a Vancouver, British Columbia based mining and metals company whose principal activities include mineral exploration, development and mining....
to operate the Kolwezi copper tailings project. First Quantum appealed the decision. The CEO Philip Pascal said "the activities on the legal side come from a small and very influential group of individuals in the Congo and don't necessarily mirror the sentiments of a number of other authorities".
Later the government also expropriated the Frontier
Frontier Mine, Katanga
Frontier Mine is a copper mine in Katanga Province, Democratic Republic of the Congo that was owned and operated by the Canadian Mining Company First Quantum Minerals...
and Lonshi
Lonshi Mine
Lonshi Mine is a copper mine in Katanga Province of the Democratic Republic of the Congo, to the southeast of Ndola, Zambia.-Operations:The mine produces high-grade oxide ore that was transported to Zambia for processing at the SX/EW facility in Bwana....
mines from First Quantum.
In March 2011 the state-owned Sodimico
Sodimico
Sodimico is a state-owned mining company in the Democratic Republic of the Congo .-Early years:...
sold its 30% stake in these two mines for $30 million to two companies registered in the British Virgin Islands. The total estimated value of the mines was over $1.6 billion.
In June 2010 the Financial Post
Financial Post
The Financial Post was an English Canadian business newspaper, which published from 1907 to 1998. In 1998, the publication was folded into the new National Post, although the name Financial Post has been retained as the banner for that paper's business section and also lives on in the Post’s...
of Canada reported that Highwind Properties, a company registered in the British Virgin Islands, now owned the Kolwezi project. The newspaper, citing unnamed sources, linked the company to Dan Gertler.
In August 2010 ENRC, a company listed in London with most of its operations in Kazakhstan, said it was buying indirect control of the Kolwezi licence from Dan Gertler.
ENRC was buying 50.5% of Camrose from Gertler. Camrose's key asset was a 70% interest in the Kolwezi project.
The Kolwezi property was sold to Gertler for $20 million. He in turn sold 50.5% of Camrose to ENRC for $175 million.
In April 2011 a British MP called for an investigation of the transaction under the Bribery Act.
In July 2011 Fleurette Properties, owned by Dan Gertler, settled a claim over having missed paying in full an installment on an $8 million debt after flooding at the Kipushi
Kipushi Mine
Kipushi Mine is an underground mine in the Democratic Republic of the Congo, near the town of Kipushi in the province of Katanga. The was an active producing mine between 1925 and 1993, as of 2006 there was an estimated 16.9 million tons of ore in the measured and indicated categories, with a...
copper and zinc mine in the DRC. The mine has been out of operation since 1993, but there are plans to bring it back into production. An electricity problem caused the pumps to fail and the mine to flood in November 2010, and emergency measures had to be taken to drain the mine.
In September 2011 the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
asked for explanations from Sodimico and Gecamines, both state owned mining companies, of sales of assets below market value and without publicity. At the time, the IMF was providing loans to the DRC worth $561 million to improve the economy. Gecamines sold its 20% share of the Mutanda
Mutanda Mine
The Mutanda Mine is an open-pit copper mine in the Katanga Province of the Democratic Republic of the Congo.-Location:The Mutanda Mine lies about to the southeast of Kolwezi in the Roan formation....
project, worth an estimated $600 million, for $137 million.
The buyer was Rowny Assets, a company registered in the British Virgin Islands and "associated" with Gertler.
Gecamines sold its 25% percent share in the neighboring Kansuki copper and cobalt project to another British Virgin Islands entity associated with Gertler for an undisclosed price. Kansuki was said to potentially be a larger producer than Mutanda.
Analysts criticized lack of transparency in the disposal of key assets by Gecamines, which the government was preparing for sale to private investors.