Dan Gertler (born December 1973) is an Israeli businessman, the founder and President of the DGI (Dan Gertler International) Group of Companies. He has large interests in diamonds and copper mining in the Democratic Republic of the Congo (DRC).
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Dan Gertler was born in December 1973. He is a grandson of Moshe Schnitzer, first President of the Israeli Diamond Exchange, who won the Israel Prize in 2004. His family was traditionally involved in cutting and merchandising diamonds. While growing up, Gertler spent as much time as he could learning about the diamond trade from his father and grandfather. As soon as he had completed his 3-year mandatory service in the Israeli Defense Forces he opened his own diamond business.[1]
Gertler founded the Dan Gertler International (DGI) group of companies in 1996.[2] The Yedioth Aharonoth weekend supplement on 19 September 1999 asserted that in 1997 Gertler had been involved in financing a program to buy diamonds in Liberia and Sierra Leone in exchange for military training and arms deliveries. The plan fell apart due to the chaotic political changes and military events in Sierra Leone at that time.[3] The Israeli arms dealer Yair Klein, who had been convicted for earlier involvement in Colombia, was charged with arming and training rebels, and was thrown in jail.[4] Gertler was also involved in trading in Russia and Guinea.[3]
After gaining experience with purchasing and marketing artisanally mined diamonds from the DRC, Gertler started negotiations to establish a partnership with the Societé Minière de Bakwanga (MIBA), a state-controlled diamond mine operator.[1] A report in "Rough & Polished" said Gertler paid $20 million to the dominant Kabila clan in the DRC for a monopoly on exporting Congo diamonds, and that the deal included a reciprocal agreement to arrange arms shipments from Israel to the DRC.[2] However, the Israeli journalist Ron Ben-Yishai of Yediot Aharonot newspaper said that any involvement in an arms deal was highly unlikely after the fiasco in Sierra Leone, and that his family would not have allowed it. It is clear that the DRC President, Laurent-Désiré Kabila, needed the money to fund his government's struggle against rebels in the Second Congo War, which lasted from 1998 to 2003, with millions of people dying. Any assistance that Gertler could provide in arranging for arms and training by Israel would have been welcome.[3] The press picked up on the story, saying Gertler's deal included an arrangement for the Israelis to train Congolese security forces in brutal techniques, as they had under Mobutu Sese Seko, that IDI was buying diamonds from UNITA and that by paying below the market price IDI was encouraging smuggling into the Republic of Congo (Brazzaville).[5]
After Laurent-Désiré Kabila died in January 2001, Gertler briefly lost influence in the Congo, but soon managed to reestablish a relationship with his son and successor Joseph Kabila.[2] In April 2002 Emaxon Finance, a Canadian company owned by DGI group, gained a four-year right to market 88% of MIBA's rough-diamond production, about a quarter of the DRC's legitimate diamond exports at around 600,000 carats a month.[6] Gertler became increasingly close to President Joseph Kabila, and was invited to Kabila's wedding in 2006.[7] By 2009 DGI group was one of the largest wholesale distributors of rough and polished diamonds in the world. The group spans mining, manufacturing and sales.[2]
In March 2004, Dan Gertler International in partnership with Beny Steinmetz Global founded a firm named Global Enterprises Corporate (GEC). In May 2004 GEC signed a preliminary agreement with the state-owned Gécamines, finalized in September that year, to rehabilitate and operate the Kananga and Tilwezembe copper mines. The deal was ratified by presidential decree. Gertler and Steinmetz placed GEC'S 75% share in KOV into Nikanor Plc., registered in the Isle of Man. Nikanor's stock was listed on on the LSE's Alternative Investment Market in London in July 2006. The IPO raised $400 million, and Nikanor's market capitalization reached $1.5 billion.[8] In February 2007, 22% of the Nikanor Mining company was owned by the Gertner Family Trust and 14% by Dan Gertler.[9] In January 2008 Katanga Mining acquired Nikanor PLC for $452m.[10]
In April 2006 Gertler's DGI took a major stake in DEM Mining. a cobalt-copper mining and services company based in Katanga.[8] In June 2006 Gertler bought Tremalt, which had a half share in the Mukondo Mine for about $60m from the Zimbabwean businessman John Bredenkamp.[11] In 2007 Tremalt was owned by Prairie International Ltd, of which Dan Gertler’s family trust was a major shareholder. Tremalt owned 80% of Savannah Mining, which held concessions C17 and C18 in Katanga Province and 50% of the Mukondo project. The other 50% of Mukonda was held by Boss Mining, which in turn was 80% owned by Central African Mining & Exploration Company (CAMEC).[12] Boss Mining had rented and operated Bredenkamp's half of Mukondo. Gertler terminated this arrangement.[8]
Billy Rautenbach, another Zimbabwe businessman, had formerly owned Boss Mining. In a February 2006 deal, Rautenbach had gained about 17% of the CAMEC shares when CAMEC bought Boss.[11] Gertler and CAMEC made plans to combine the Mukondo assets into a new holding company. Billy Rautenbach would be excluded from ownership in the new company due to the hostile relations that had developed between him and the DRC government.[12] CAMEC and Prairie International signed the MOU to complete the deal in November 2007.[13] In February 2008 the two companies announced that the Mukondo Mountain operations had restarted.[14]
In July 2008 Anvil Mining announced that it was selling about C$296 million worth of shares worth to Catala Global in a private placement. Catela Global, a company owned by Dan Gertler's family trust, would own around 25% of Anvil on completion of the deal.[15] Although RBC Capital Markets analyst Cailey Barker speculated that Anvil would use the cash infusion for acquisitions, the company insisted it would remain focused on completing its Kinsevere Stage II project.[16] In August 2008 the amount to be paid was lowered to about C$237 million due to "the significant deterioration in market conditions for resource companies".[17] Camrose Resources Ltd, a Gertler family trust company, purchased s 62.5% share of Africo Resources in 2008. The next February, Africo confirmed that it had the go ahead from the DRC government for 75%-owned Kalukundi project.[18]
In September 2009 the DRC government revoked the license of Canadian miner First Quantum Minerals to operate the Kolwezi copper tailings project. First Quantum appealed the decision. The CEO Philip Pascal said "the activities on the legal side come from a small and very influential group of individuals in the Congo and don't necessarily mirror the sentiments of a number of other authorities".[19] Later the government also expropriated the Frontier and Lonshi mines from First Quantum. In March 2011 the state-owned Sodimico sold its 30% stake in these two mines for $30 million to two companies registered in the British Virgin Islands. The total estimated value of the mines was over $1.6 billion.[20]
In June 2010 the Financial Post of Canada reported that Highwind Properties, a company registered in the British Virgin Islands, now owned the Kolwezi project. The newspaper, citing unnamed sources, linked the company to Dan Gertler.[19] In August 2010 ENRC, a company listed in London with most of its operations in Kazakhstan, said it was buying indirect control of the Kolwezi licence from Dan Gertler.[21] ENRC was buying 50.5% of Camrose from Gertler. Camrose's key asset was a 70% interest in the Kolwezi project.[22] The Kolwezi property was sold to Gertler for $20 million. He in turn sold 50.5% of Camrose to ENRC for $175 million. In April 2011 a British MP called for an investigation of the transaction under the Bribery Act.[23]
In September 2011 the International Monetary Fund asked for explanations from Sodimico and Gecamines, both state owned mining companies, concerning sales of assets below market value and without publicity. At the time, the IMF was providing loans to the DRC worth $561 million to improve the economy. Gecamines had sold its 20% share of the Mutanda project to Rowny Assets. This company, registered in the British Virgin Islands, was said to be "associated" with Gertler. The share was worth an estimated $600 million, but was sold for for $137 million.[20] Analysts criticized lack of transparency in the disposal of key assets by Gecamines, which the government was preparing for sale to private investors.[24]