Biden open to easing sanctions on billionaire Gertler in return for Congo exit

17th May 2024

By: Bloomberg

  

Font size: - +

The US government is open to easing sanctions on billionaire mining magnate Dan Gertler if he gives up his business operations and assets in the Democratic Republic of Congo, where Washington’s interest in critical minerals has run up against his problematic royalties ownership.

The Treasury Department is willing to grant limited sanctions relief to Gertler, an Israeli citizen, as a way to incentivize his complete exit from Congo, including relinquishing his royalty streams on three strategic projects, according to two US officials, who asked not to be identified as the talks are ongoing.

The mines are rich in copper and cobalt, a key ingredient in most electrical vehicle batteries and which is almost exclusively mined in Congo. While Chinese miners have thrived in the Central African country, Western investors have been reluctant, in part because of a legacy of corruption.

Gertler was sanctioned in 2017 by the US Treasury for “hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals” in Congo under the previous administration of President Joseph Kabila. In the waning days of his presidency, Donald Trump granted him a one-year reprieve that was cancelled early by the Biden administration.

The willingness to loosen sanctions to purge Gertler from the projects, first reported by the New York Times, come as the US seeks to boost investments in critical minerals needed for EVs from sources not tied to Chinese firms that dominate the industry.

Gertler has never been charged with a crime and denies any wrongdoing. Gertler and his US-based lawyers didn’t respond to emailed requests for comment.

He cut a deal with Congo in 2022 to give back some of his assets in exchange for help lobbying the US government to lift his sanctions. But as part of the agreement he retained his royalties in the world’s biggest non-Chinese sources of cobalt.

Those royalty streams have enriched Gertler by hundreds of millions of dollars from metal projects owned by Eurasian Resources Group and Glencore Plc, according to calculations made by Congo Is Not For Sale, a consortium of Congolese and international anti-corruption groups.

Glencore declined to comment, while ERG didn’t respond to emails requesting comment. Congo’s government didn’t immediately provide comment when contacted Thursday by text message, and the office of President Felix Tshisekedi didn’t respond to text messages requesting comment.

Gertler first came to Congo in 1997 and struck up a friendship with Kabila that led to billions of dollars worth of investments in minerals and oil.

Edited by Bloomberg

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION