Dan Gertler is an Israeli billionaire businessman known for his involvement in natural resource industries, particularly in the Democratic Republic of the Congo (DRC). As the founder and president of the DGI (Dan Gertler International) group of companies, Gertler has amassed a fortune through diamond and copper mining, as well as investments in various other sectors such as iron ore, gold, cobalt, oil, agriculture, and banking. However, his business dealings have been the subject of scrutiny and controversy, with allegations of exploiting the Congolese people for personal gain.
Early Life And Background
Dan Gertler was born on December 23, 1973, and comes from a family with a strong background in the diamond trade. His grandfather, Moshe Schnitzer, was the first president and co-founder of the Israel Diamond Exchange and was awarded the Israel Prize in 2004. Gertler grew up learning about the diamond trade from his father and grandfather. After completing his mandatory service in the Israeli Defense Forces, he ventured into his own diamond business.
Business Career And Controversies
1. Dan Gertler International (DGI)
In 1996, Gertler founded the Dan Gertler International (DGI) group of companies. His first mining venture in the DRC began in 1997, where he acquired diamond and copper mining interests. Over the years, Gertler became known for purchasing some of the most lucrative mineral rights in the country. His close friendship with Joseph Kabila, the former President of the DRC, played a significant role in his business success.
International Diamond Industries-Congo (IDI-Congo)
Gertler’s involvement in the diamond industry in the DRC gained attention through his partnership with the Societé Minière de Bakwanga (MIBA), a state-controlled diamond mine operator. Through his connections with Joseph Kabila, Gertler secured the sole right to purchase all diamonds produced in the Congolese Government-controlled territory for a period of time. This deal aimed to regulate and certify the origins of diamonds under UN requirements but faced criticism for its alleged negative impact on the Congolese people.
Emaxon Finance International Inc And The Diamond Industry
In 2001, Gertler established Emaxon Finance International Inc in Canada as a subsidiary of DGI. Through this company, he gained a four-year right to market a significant portion of the rough-diamond production of MIBA, accounting for a quarter of the DRC’s legitimate diamond exports. Emaxon Finance International Inc also provided financial support to MIBA for modernizing its mining equipment. However, the company faced sanctions from the United States Office of Foreign Assets Control and had its corporate registration canceled in 2017.
Fleurette Group And Fleurette Properties
Gertler’s control over concessions in the DRC is facilitated through Fleurette Properties, a Gibraltar-based company with numerous offshore holding companies. Fleurette Group, in which Fleurette Properties is either a direct or indirect shareholder, has owned the Kansuki concession, a significant copper and cobalt development project, since 2006. This project has employed thousands of people and has been a major source of private receipts for the Congolese government.
Controversies And Sanctions
Dan Gertler’s business activities have faced scrutiny and allegations of exploitation and corruption. The International Monetary Fund (IMF) and the World Bank have been investigating his deals since 2012. He has been accused of looting the DRC’s resources at the expense of its people. The Panama Papers leak revealed his involvement in deals carried out through offshore companies. In 2017, US President Donald Trump issued an executive order implementing sanctions on Gertler under the Global Magnitsky Human Rights Accountability Act. Although the sanctions were briefly lifted in 2021, they were reinstated by the Biden administration.
Family Trust And Mining Investments In The DRC
Dan Gertler, an Israeli mining magnate, has been involved in various mining investments in the Democratic Republic of Congo (DRC) through his family trust. These investments include partnerships with companies such as Glencore International Plc and the acquisition of mining assets through his own companies, such as Global Enterprises Corporate (GEC) and Camrose Resources Ltd. This article will provide a detailed overview of Gertler’s family trust and its involvement in the mining industry in the DRC.
Global Enterprises Corporate And Nikanor (2004-2008)
In 2004, Gertler’s family trust founded Global Enterprises Corporate (GEC) in partnership with Beny Steinmetz Global. GEC signed an agreement with the state-owned Gécamines to rehabilitate and operate the Kananga and Tilwezembe copper mines. This deal was later found to have lacked transparency by the World Bank.
GEC’s mining assets were eventually held by Nikanor plc, registered in the Isle of Man. Gertler and Steinmetz placed GEC’s 75% share in the KOV mine into Nikanor. Nikanor went public in July 2006 and was acquired by Katanga Mining in January 2008.
DEM Mining 2006 – Cobalt And Copper In Katanga Copper Belt
In April 2006, Gertler’s company DGI acquired a major stake in DEM Mining, a cobalt-copper mining and services company based in Katanga.
Tremalt Ltd 2006 – Mukondo Mine, Kanaga Copper Belt
In June 2006, Gertler purchased Tremalt, which had a 50% share in the Mukondo Mine, for approximately $60 million from Zimbabwean businessman John Bredenkamp.
Prairie International Ltd. 2007 – Mukondo, Kanaga Copper Belt
In 2007, Tremalt was owned by Prairie International Ltd., of which Gertler’s family trust was a major shareholder. Prairie International owned 80% of Savannah Mining, which held concessions in Katanga Province and 50% of the Mukondo project.
Glencore Partnership 2007
Gertler partnered with Glencore International Plc, the largest commodities trading company, in 2007. One of their joint mining ventures was Mutanda mine.
Catela Global, 2008
In July 2008, Catela Global, a company owned by Gertler’s family trust, offered to buy approximately 25% of Anvil Mining shares in a private placement. This investment was intended to support Anvil Mining’s Kinsevere Stage II project.
Camrose Resources Ltd > Africo > Kalukundi Mine, 2007
In 2007, Camrose Resources Ltd was created as a joint venture between Mvelaphanda Holdings, Palladino Holdings, and Och-Ziff Capital Management. Camrose acquired a controlling stake in Africo Resources through a series of transactions from 2007 to 2008. Africo held a 75% interest in the Kalukundi exploitation license.
Camrose And Highwind Group 2008-10
In 2008, Camrose Resources Ltd purchased a 62.5% share of Africo Resources. In 2009, Highwind Group, a company owned by Gertler’s family trust, sold 50.5% of Kolwezi Mine Tailings to ENRC. In 2010, Camrose acquired Highwind Group.
In 2011, Sodimico sold its 30% stake in the Kalukundi mine to Camrose, increasing its ownership to 95%. In the same year, Camrose Resources Ltd was acquired by ENRC (Eurasian Natural Resources Corporation), a multinational mining company.
Dan Gertler’s Controversial Mining And Oil Deals In The Democratic Republic Of Congo
Dan Gertler, a prominent businessman and mining tycoon, has been involved in numerous controversial mining and oil deals in the Democratic Republic of Congo (DRC). Through his offshore companies, Gertler has acquired significant stakes in mining projects and oil companies, raising concerns about transparency, undervalued sales, and corruption. This article delves into the details of Gertler’s controversial deals, their impact on the DRC’s economy, and the subsequent international sanctions imposed on him.
Emerald Star Enterprises Limited: Lucrative Returns and Lack of Transparency
Emerald Star Enterprises Limited, controlled by Gertler’s family trust, was incorporated in the British Virgin Islands in 2009. The company sold an option to buy the remaining 50% stake of Société Minière de Kabolela et de Kipese SPRL to Eurasian Natural Resources Corporation (ENRC) in 2009. Gertler’s company then purchased Gécamines’ 50% share for $15 million and sold it to ENRC for $50 million, making a substantial 500% return. However, these transactions raised concerns about transparency and below-market-value sales.
Rowny Assets Limited: Undervalued Acquisition Of Mutanda Mine
Rowny Assets Limited, another offshore firm owned by Gertler’s family, acquired a 20% interest in the Mutanda project from Gécamines. The share was estimated to be worth $600 million but was sold for only $137 million. This undervalued acquisition further fueled allegations of opaque deals and financial impropriety.
Biko Invest Corporation: Gécamines’ Sale To Gertler’s Linked Company
Biko Invest Corporation, incorporated in the British Virgin Islands and linked to Gertler, purchased a quarter of Kansuki Sprl from Gécamines in 2011. The details of this transaction, like others involving Gertler, were criticized for lack of transparency and potential undervaluation.
IMF Concerns And Loan Suspension
The International Monetary Fund (IMF) raised concerns about the disposal of assets by Gécamines and the potential loss of revenue for the DRC government. In 2012, the IMF halted a $500 million loan to the DRC due to irregularities in a company allegedly controlled by Gertler’s acquisition of minerals from the government. Lack of transparency and below-market-value sales were cited as key issues.
Oil Industry Involvement And Lack Of Transparency
Gertler’s involvement in the oil industry in the DRC added to the controversy surrounding his business dealings. In 2013, he sold Nessergy Ltd, one of his Congo-based oil companies, for $150 million. This deal faced criticism for its lack of transparency, raising questions about the fairness and legitimacy of the transaction.
Panama Papers And Paradise Papers Revelations
Gertler’s name appeared multiple times in the Panama Papers, with Mossack Fonseca registering several companies for him. The revelations raised further concerns about offshore structures and potential financial impropriety. The Paradise Papers also shed light on Gertler’s relationship with Glencore and a loan of $45 million in exchange for his assistance in negotiations with the DRC government.
Sanctions Imposed By The United States
In 2018, Dan Gertler was sanctioned by the United States under the Magnitsky Act for serious human rights abuse and corruption. The sanctions resulted in the blocking of his US-based assets and prevented him from conducting business in dollars. The US government imposed these sanctions due to allegations of opaque and corrupt mining and oil deals in the DRC.
Temporary Reprieve And Subsequent Revocation
In 2021, Gertler received a temporary reprieve from the sanctions during the final days of the Trump administration. This reprieve allowed him to conduct business with US entities for a limited period. However, the Biden administration revoked this reprieve in March 2021, reinstating the sanctions against Gertler.
Impact On The DRC’s Economy And Resource Management
Gertler’s control over cobalt, copper mining, and oil-drilling rights in the DRC has raised concerns about the country’s economic development and resource management. Critics argue that as long as Gertler maintains control over these valuable assets, the DRC cannot sell them to new investors and fully benefit from its own resources. This has led to calls for greater transparency, fair market practices, and responsible resource management in the country.
Dan Gertler’s Net Worth: $1.2B
Dan Gertler, an Israeli billionaire, has amassed a significant fortune through his involvement in the diamond trade in the Democratic Republic of Congo (DR Congo). As of October 2023, Forbes estimates his net worth to be $1.2 billion, placing him at the 2259th position on the Forbes World Billionaire Ranking for the same year.
