Kinshasa/London — An attempt by the Democratic Republic of the Congo’s Gecamines to profit from the boom in battery metals has backfired, leaving the state-owned miner facing two international court actions and halting cobalt production at a key mine. Gecamines blocked its 16-year partner GTL’s access to the cobalt site in the southeastern Congolese town of Lubumbashi in March to make way for a new investor, as prices for the metal soared. The attempt to switch one partner for the other has resulted in both parties taking legal action against the state-owned company for breach of contract. Jersey-registered GTL, a joint venture in which closely held Groupe Forrest International has a 70% stake and Gecamines holds 30%, is suing Gecamines in the commercial court in Brussels for damages, according to two people familiar with the matter. The court schedule means no more cobalt is likely to be produced at the site until at least 2020 if there is not a settlement, said the people, who ask...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.