Tremalt

Tremalt Limited was a privately held mining company incorporated in the British Virgin Islands. Its principal historical activities were connected with copper and cobalt properties in the Democratic Republic of the Congo, especially assets in Katanga Province that had previously been associated with the state mining enterprise Gecamines. Rather than being known as a consumer-facing brand, Tremalt functioned as a corporate vehicle for holding and developing mineral concessions, participating in joint ventures, and arranging ownership of mining assets through offshore entities. The company became controversial because of a 2001 transaction involving the Kababancola Mining Company, or KMC. KMC was established in January 2001 as a 25-year copper-and-cobalt partnership. Tremalt held 80 percent and Gecamines held 20 percent. Through the arrangement, KMC obtained rights connected with mines, processing facilities, and concentrators at Kambove and Kakanda, including six Gecamines concessions. A United Nations investigation later reported that Tremalt paid approximately US$400,000 for rights to concessions that contained estimated resources of about 2.7 million tonnes of copper and 325,000 tonnes of cobalt, with an estimated value exceeding US$1 billion at the time. These figures were allegations and estimates reported by the UN panel rather than independently verified company accounts. The arrangement also included a private profit-sharing agreement under which net profits were to be divided among Tremalt, the DRC government, and the Zimbabwean government. The UN panel reported that Tremalt undertook to provide military vehicles and cash in place of some payments. The reported involvement of Zimbabwean military figures and the alleged use of military equipment contributed to sustained criticism of the transaction and to wider debate about wartime resource exploitation in the DRC. Operationally, KMC made limited investment in the properties. It continued operating the already functioning Kamoya Mine but did not open several other facilities. In March 2002, DRC authorities took back control of the Kambove concentrator after a dispute involving the KMC manager and Gecamines reached the International Centre for Settlement of Investment Disputes. KMC reported a cumulative loss of more than US$11 million at the end of its first three years, according to its 2003 year-end report. Tremalt's ownership was difficult to identify publicly. A network of holding companies and trusts registered in the Isle of Man and the British Virgin Islands was reported to have obscured the company's ultimate beneficial owners. John Bredenkamp initially controlled Tremalt, and in 2006 he sold the company for approximately US$60 million to Israeli-American businessman Dan Gertler. By 2007, Tremalt was reported to be owned by Prairie International Ltd., in which Gertler's family trust was a major shareholder. In its later reported structure, Tremalt owned 80 percent of Savannah Mining. Savannah Mining held concessions known as C17 and C18 in Katanga Province and a 50 percent interest in the Mukondo project. The other half of Mukondo was held by BOSS Mining, which was 80 percent owned by the Central African Mining & Exploration Company, or CAMEC. In November 2007, CAMEC and Prairie International signed a memorandum of understanding concerning a proposed new holding company for the Mukondo assets. The proposed structure was also connected with tensions between Zimbabwean businessman Billy Rautenbach and the DRC government. The available reference material does not establish whether the proposed combination was completed or what ultimately happened to all of Tremalt's assets.

Tremalt Limited was incorporated in the British Virgin Islands and operated as an offshore mining company with assets and interests in the Democratic Republic of the Congo. Public accounts describe it primarily as a holding and transaction vehicle rather than as a vertically integrated mining producer. Its business centered on copper and cobalt concessions, mines, concentrators, and joint-venture interests in the mineral-rich Katanga region. The company's most consequential transaction occurred in 2001, when it acquired an 80 percent interest in the Kababancola Mining Company. KMC was formed in January 2001 for a 25-year term, with Gecamines, the DRC's state mining company, holding the remaining 20 percent. KMC obtained rights relating to mines, facilities, and concentrators at Kambove and Kakanda, including six Gecamines concessions. The United Nations Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo later reported that Tremalt paid approximately US$400,000 for the rights. The same report estimated that the concessions contained 2.7 million tonnes of copper and 325,000 tonnes of cobalt and had a value exceeding US$1 billion. The transaction was criticized because of its reported political and military dimensions. A private agreement reportedly allocated net profits in equal 34 percent shares to the DRC and Zimbabwe governments, with 32 percent assigned to Tremalt. The UN panel said Tremalt had undertaken to provide military vehicles and cash in lieu of some payments. It identified Zimbabwean military officers Sibusiso Busi Moyo and Mike Tichafa Karakadzai as important participants in arranging the deal. These findings placed Tremalt within broader international scrutiny of natural-resource transactions conducted during the Second Congo War and of the use of mining concessions to support political or military relationships. The assets did not appear to receive the level of development implied by their geological potential. KMC continued operating the pre-existing Kamoya Mine but did not open several of the other properties. In March 2002, DRC authorities recovered control of the Kambove concentrator after a dispute involving the KMC manager and Gecamines. KMC's 2003 year-end report stated that the company had accumulated losses of more than US$11 million during its first three years. The limited investment and the recovery of assets by the DRC contributed to criticism of Tremalt's role and performance. Ownership transparency was another recurring issue. The available account states that private holding companies and trusts in the Isle of Man and British Virgin Islands obscured the ultimate owners of Tremalt. John Bredenkamp initially controlled the company. In 2006, he sold it to Dan Gertler for approximately US$60 million. By 2007, Prairie International Ltd. was reported as Tremalt's owner, with Gertler's family trust described as a major shareholder. Tremalt later held an 80 percent interest in Savannah Mining. Savannah controlled or held rights to concessions C17 and C18 in Katanga Province and a 50 percent interest in the Mukondo project. BOSS Mining held the other 50 percent of Mukondo and was itself 80 percent owned by CAMEC. In November 2007, CAMEC and Prairie International signed a memorandum of understanding concerning a proposed consolidation of Mukondo assets into a new holding company. The proposed arrangement was linked to efforts to exclude Billy Rautenbach from the new ownership structure because of deteriorating relations between him and the DRC government. The available sources do not confirm completion of the proposed transaction or provide a definitive account of Tremalt's later legal or operational status. Tremalt was also the subject of an action by the UK-based nongovernmental organization Rights and Accountability in Development, which alleged illegal resource exploitation. The UK National Contact Point for the Organisation for Economic Co-operation and Development declined to proceed on the basis that the matter had been addressed by the UN panel, and RAID withdrew the case in June 2004. No current website, public listing, or verified continuing operating status is identified in the supplied sources.

• 2007

  Mukondo consolidation proposed

  [1]Tremalten.wikipedia.org

  CAMEC and Prairie International signed a memorandum of understanding concerning a proposed holding company for Mukondo-related assets.

• 2006

  Ownership transferred to Dan Gertler

  [1]Tremalten.wikipedia.org

  John Bredenkamp reportedly sold Tremalt to Dan Gertler for approximately US$60 million.

• 2004

  RAID withdrew its UK complaint

  [1]Tremalten.wikipedia.org

  Rights and Accountability in Development withdrew its case against Tremalt after the UK OECD National Contact Point treated the matter as resolved through the UN process.

• 2002

  Kambove concentrator returned to DRC control

  [1]Tremalten.wikipedia.org

  DRC authorities took back control of the Kambove concentrator after a dispute involving KMC and Gecamines.

• 2002

  UN panel reported on the Tremalt transaction

  [1]Tremalten.wikipedia.org

  The UN Final Report on illegal exploitation of DRC resources described the concession valuation, ownership arrangements, profit-sharing terms, and alleged military-equipment commitments associated with the KMC deal.

• 2001

  Kababancola Mining Company established

  [1]Tremalten.wikipedia.org

  KMC was established as a 25-year copper-and-cobalt partnership. Tremalt held 80 percent and Gecamines held 20 percent, with KMC receiving rights connected to Kambove and Kakanda properties.

A privately held offshore mining company and asset-holding vehicle focused on copper and cobalt properties in the Democratic Republic of the Congo.

• Copper and cobalt mining joint venture · 2001

  Kababancola Mining Company interests

  Tremalt's principal early asset was an 80 percent interest in KMC, a joint venture with Gecamines. KMC held rights associated with mines, facilities, and concentrators at Kambove and Kakanda, and continued operating the Kamoya Mine. The available sources indicate limited development of several additional properties and do not establish sustained production across the full concession package.

• Copper and cobalt mining concessions

  Savannah Mining concessions C17 and C18

  By 2007, Tremalt was reported to own 80 percent of Savannah Mining. Savannah held concessions identified as C17 and C18 in Katanga Province. The supplied material does not provide reliable production volumes, mine-development schedules, or a confirmed account of the concessions' later ownership.

• Copper and cobalt mining project

  Mukondo project interest

  Tremalt was reported to hold 50 percent of the Mukondo project, with the other 50 percent held by BOSS Mining. CAMEC and Prairie International proposed combining the related interests in a new holding company in 2007, but the available sources do not confirm that the proposed structure was completed.

• 2004

  Rights and Accountability in Development complaint

  RAID brought a case alleging illegal resource exploitation. The UK OECD National Contact Point blocked further consideration after determining that the issue had been addressed by the UN panel, and RAID withdrew the case in June 2004.

  Source

• 2002

  UN criticism of the KMC concession transaction

  A United Nations expert panel criticized and investigated the transaction through which KMC, controlled by Tremalt, obtained rights to DRC copper and cobalt concessions. The report highlighted the very low reported acquisition payment relative to estimated concession value, offshore ownership structures, a private profit-sharing arrangement, and alleged commitments involving military vehicles and cash.

  Source

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• 2007

  Proposed consolidation of Mukondo assetsM&A

  Background

  Tremalt-related interests and CAMEC-related interests each held half of the Mukondo project.

  Action taken

  CAMEC and Prairie International signed a memorandum of understanding to place the Mukondo assets in a new holding company.

  Aftermath

  The supplied sources do not establish whether the proposed consolidation was completed.

  Source

• 2006

  Sale of Tremalt to Dan GertlerM&A

  Background

  John Bredenkamp controlled Tremalt before the transaction.

  Action taken

  Bredenkamp reportedly sold the company to Dan Gertler.

  Aftermath

  By 2007, Prairie International Ltd. was reported as the owner, with Gertler's family trust described as a major shareholder.

  Reported sale price. Approximately US$60 million (2006)

  Source

• 2001

  Tremalt took an 80 percent stake in KMCM&A

  Background

  Tremalt sought exposure to copper and cobalt assets controlled or formerly controlled by Gecamines in the Kambove and Kakanda areas.

  Action taken

  It entered the KMC partnership with Gecamines, holding 80 percent while Gecamines retained 20 percent.

  Aftermath

  The transaction became the focus of a 2002 UN investigation, and DRC authorities later recovered control of the Kambove concentrator.

  Reported acquisition payment for rights. Approximately US$400,000 (2001 transaction; reported by the UN in 2002)

  Source

1. 1Tremalten.wikipedia.org