Glencore PLC (LON:GLEN) has settled a dispute with controversial diamond billionaire Dan Gertler over mining royalties in the Democratic Republic of Congo.
The mining titan said that it had carefully considered the legal and commercial options of the dispute with Ventora, Gertler’s vehicle, and to avoid having assets seized had agreed to pay up.
READ: Glencore up as DRC state miner drops legal proceedings to dissolve copper, cobalt joint venture with Katanga
Ventora and another affiliate of Gertler, Africa Horizons, claim almost US$3bn in royalties against two Glencore businesses – Mutanda Mining and Kamoto Copper.
The issue has been complicated by sanctions imposed on Gertler by the US due to alleged bribes in mining deals.
Today’s statement said the royalties would be paid in ‘non-US dollars’.
Earlier in the week, Glencore agreed to forego US$5.6bn in debt and pay US$150mln to settle a dispute between the DRC-state owned miner Gecamines and Glencore's 86%-owned subsidiary Katanga Copper.
Katanga owns 75% of Kamoto and Glencore 100% of Mutanda, which between them are among the world’s major producers of copper and cobalt.
Glencore was recently sued for US$1bn by a founder of Mutanda, Charles Brown, who claims he was forced to sell a 19% stake to the Swiss giant.
Britain’s Serious Fraud Office meanwhile has also said it is looking into Glencore’s dealings with Gertler and DRC’s president Joseph Kabila.
Cobalt is expected to be a key component of batteries for electric vehicles and storage in future.