Nikanor Plc
Encyclopedia
Nikanor Plc was a copper and cobalt mining company active in Katanga Province
, Democratic Republic of the Congo. In January 2008 it was merged into Katanga Mining
. Katanga paid US$452 million in cash to Nikanor Shareholders.
is a diamond dealer and close friend of DRC president Joseph Kabila
.
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 Gécamines
, finalized in September that year, to rehabilitate and operate the Kananga
and Tilwezembe mines. The deal was ratified by presidential decree
The DCP properties were located next to Katanga Mining's properties near Kolwezi
.
Output was estimated to be able to reach 200,000 tons of copper annually.
The only SX-EW
refining plant in the region was at Luilu. A few months earlier Gécamines had granted management of the plant to George Forrest's Kinross-Forrest subsidiary. In September 2005 an agreement was reached for GEC and Kinross-Forrest to share the refinery. It was rumored that Gertler had used pressure from Kabila to obtain the concession.
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.
This value was based on its interests in the huge KOV (Komoto Oliveira Virgule) open cast copper-cobalt project including the Tilwezembe and Kananga deposits and the Kolwesi concentrator.
As of 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.
Following the friendly merger of the Katanga Mining and Nikanor assets, there was speculation 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.
In February 2008 it was confirmed that Katanga Mining was selling Dikuluwe
and Mashamba West to Gécamines for $825 million.
Katanga Province
Katanga Province is one of the provinces of the Democratic Republic of the Congo. Between 1971 and 1997, its official name was Shaba Province. Under the new constitution, the province was to be replaced by four smaller provinces by February 2009; this did not actually take place.Katanga's regional...
, Democratic Republic of the Congo. In January 2008 it was merged into Katanga Mining
Katanga Mining
Katanga Mining is a mining company in the Katanga Province of the Democratic Republic of the Congo , majority-owned by Swiss commodity trader Glencore.-DCC:...
. Katanga paid US$452 million in cash to Nikanor Shareholders.
Formation
Dan GertlerDan 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:...
is a diamond dealer and close friend of DRC president 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 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 Gécamines
Gécamines
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 mines. The deal was ratified by presidential decree
Operation
The two companies formed a subsidiary named DCP, 75% owned by GEC and 25% by Gécamines, and transferred exploitation permits for the pproperties to this subsidiary in 2006.The DCP properties were located next to Katanga Mining's properties near Kolwezi
Kolwezi
Kolwezi is a city in Katanga Province in the south of the Democratic Republic of the Congo, west of Likasi. It is home to an airport and a railway to Lubumbashi. The population is approximately 418,000....
.
Output was estimated to be able to reach 200,000 tons of copper annually.
The only SX-EW
SX-EW
Solvent extraction and electrowinning is a two-stage metallurgy process that first extracts and upgrades copper ions from low-grade leach solutions into a concentrated electrolyte , and then deposits pure copper onto cathodes using an electrolytic procedure ....
refining plant in the region was at Luilu. A few months earlier Gécamines had granted management of the plant to George Forrest's Kinross-Forrest subsidiary. In September 2005 an agreement was reached for GEC and Kinross-Forrest to share the refinery. It was rumored that Gertler had used pressure from Kabila to obtain the concession.
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.
This value was based on its interests in the huge KOV (Komoto Oliveira Virgule) open cast copper-cobalt project including the Tilwezembe and Kananga deposits and the Kolwesi concentrator.
As of 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.
Takeover
In January 2008 Katanga Mining acquired Nikanor PLC for $452m.Following the friendly merger of the Katanga Mining and Nikanor assets, there was speculation that the Dikuluwe and Mashamba West deposits were being transferred to Gécamines
Gécamines
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...
, and would be exploited by a joint venture owned 32% by Gécamines and 68% by a Chinese consortium.
In February 2008 it was confirmed that Katanga Mining was selling Dikuluwe
Dikuluwe Mine
The Dikuluwe Mine is a copper and cobalt mine in Katanga Province of the Democratic Republic of the Congo.Dikuluwe is the westernmost of the Diwa Pit group, with Mashamba West and Mashamba East....
and Mashamba West to Gécamines for $825 million.