Very interesting article on the illegal Coltan mining trade in Venezuela. The article is in Spanish.
Buhoneros del coltán - Nacional y Política - EL UNIVERSAL
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March 20, 2012
March 19, 2012
Exclusive: #Congo under scrutiny over #Hezbollah business links | Reuters
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Exclusive: Congo under scrutiny over Hezbollah business links | Reuters
By Dino Mahtani
LONDON | Fri Mar 16, 2012 10:40am EDT
(Reuters) - Democratic Republic of Congo has awarded lucrative forestry concessions to a company controlled by a Lebanese businessman who also runs a firm subject to sanctions by the United States as a front for Hezbollah.
The 2011 concessions issued by Congo's environment ministry to the Trans-M company, seen by Reuters, could complicate Washington's efforts to curb what it says are the Lebanese militant movement's growing business activities in Africa.
The concessions cover 25-year leases for hundreds of thousands of hectares of rainforest in the central African country, the world's second forest "lung" after the Amazon. The concessions are capable of generating hundreds of millions of dollars in revenues over 25 years, if fully exploited, forestry experts say.
Trans-M is controlled by businessman Ahmed Tajideen (whose name is also given as Tajeddine in U.S. Treasury documents). He also runs another company, Congo Futur, which the U.S. government says is a front for Hezbollah. Congo Futur cites sawmilling as one of its businesses.
The U.S. Treasury Department put Congo Futur under targeted sanctions in 2010, saying the firm was part of a network of businesses ultimately controlled by Tajideen's three brothers, Kassim, Husayn and Ali, and that this generated "millions of dollars in funding" for Hezbollah.
The sanctions aim to block U.S. dollar transfers linked to the trio, part of wider U.S. efforts to counter what Washington sees as increasing business activity in Africa by Hezbollah, which it calls "among the most dangerous terrorist groups in the world". Hezbollah has denied U.S. accusations that it is linked to money-laundering and the international narcotics trade.
Ahmed Tajideen, who is not subject to U.S. Treasury sanctions, says his brothers have no share of Congo Futur or Trans-M and that the companies are neither directly related to each other nor act as front companies for Hezbollah.
"I am the majority shareholder of both companies," Tajideen told Reuters earlier this month.
"I created both companies independently of each other", he said. "My brothers have nothing to do with the companies".
EMBARRASSING FOR KABILA
But leaked U.S. diplomatic cables produced in 2000 quote Ahmed Tajideen as saying Congo Futur established Trans-M, which is also described as a "subsidiary" of Congo Futur on the website of Congo's official investment authority, ANAPI.
"The question for the Congolese government is whether they really want to continue doing business with a company that is linked to a terrorist organization?" said a U.S. official who monitors Congo, but asked not to be named.
John Sullivan, a U.S. Treasury spokesman, told Reuters that if Trans-M was majority owned by Congo Futur, it would face sanctions. He would not comment on the immediate status of Ahmed Tajideen or Trans-M.
"Treasury does not comment on possible enforcement actions or designations," he said.
The Trans-M forestry concessions are an embarrassment for the government of President Joseph Kabila, who was returned to office in last year's troubled presidential elections that were criticized by the United States as "seriously flawed".
Seraphim Ngwej, a senior advisor to president Kabila, told Reuters the U.S. government had not officially communicated any allegations about the concessions to Congo's government.
He said he would be willing to assist. "But there must be proof," Ngwej said.
Leopold Kalala Ndjibu-Kalema, a senior legal adviser to Congo's environment ministry, said in an official statement that there is "no concrete proof" that Trans-M is involved in Hezbollah activities and insisted its concessions had nothing to do with Congo Futur.
But a European Union-funded forestry publication in 2011 refers to Congo Futur as the "parent company" of Trans-M. Employees and a business partner of Congo Futur contacted by Reuters have also stated Trans-M is a "subsidiary" of Congo Futur and is owned by all the Tajideen brothers.
"WEAK STATES"
U.S. officials are concerned that Congo, whose location in the heart of Africa makes it important for the continent's stability, may become a safe haven for Hezbollah financiers looking to take advantage of weak financial regulation in the lawless and commodity rich central African giant.
"We do have major concerns about all weak states, and especially places like Congo," said one U.S. official who asked not to be named. "The attention here in Washington is pretty high," he added.
U.S. authorities last year put the spotlight on Hezbollah's Africa-based activities by unveiling a Drug Enforcement Administration (DEA) probe alleging the Iranian-backed group was involved in money laundering activities in West Africa linked to the narcotics and second hand car trade.
The Tajideen family has operated real estate, diamond export, supermarket and food processing businesses across Angola, Gambia and Sierra Leone and Congo for many years, the U.S. Treasury says.
West and Central Africa host significant and long-established Lebanese diaspora communities. But U.S. interest in the Tajideen family sharpened in 2003 when Belgian police raided the Antwerp offices of a company managed by Kassim Tajideen and accused it of "large scale tax fraud, money laundering and trade in diamonds of doubtful origin". No charges were brought in Belgium.
The U.S. Treasury made Kassim Tajideen subject to sanctions in 2009 and in 2010 also sanctioned Husayn Tajideen and Ali Tajideen, who it says was once a Hezbollah commander in Lebanon. The Treasury says Husayn and Ali are amongst Hezbollah's "top financiers in Africa".
A Hezbollah official declined to comment on the U.S. allegations. When the Treasury sanctioned some of the family's companies in 2010, U.S. citizens were barred from doing business with them. But some of the companies continued to operate freely in their host countries, including Congo Futur.
Israel has also expressed concern about what it says are growing Hezbollah financial interests in Africa.
Ron Prosor, Israel's ambassador to the United Nations, told the Security Council last month that he was particularly concerned that West Africa had become a "hub" for Hezbollah. But he did not refer to central Africa or Congo.
Powerful Israeli businessmen still retain good relations with president Kabila, notably Dan Gertler, a wealthy diamond merchant who controls numerous mining and other interests in Congo, many managed via offshore companies.
(Additional reporting by Jonny Hogg in Kinshasa; Editing by Pascal Fletcher)
See thé article online here: Exclusive: Congo under scrutiny over Hezbollah business links | Reuters
By Dino Mahtani
LONDON | Fri Mar 16, 2012 10:40am EDT
(Reuters) - Democratic Republic of Congo has awarded lucrative forestry concessions to a company controlled by a Lebanese businessman who also runs a firm subject to sanctions by the United States as a front for Hezbollah.
The 2011 concessions issued by Congo's environment ministry to the Trans-M company, seen by Reuters, could complicate Washington's efforts to curb what it says are the Lebanese militant movement's growing business activities in Africa.
The concessions cover 25-year leases for hundreds of thousands of hectares of rainforest in the central African country, the world's second forest "lung" after the Amazon. The concessions are capable of generating hundreds of millions of dollars in revenues over 25 years, if fully exploited, forestry experts say.
Trans-M is controlled by businessman Ahmed Tajideen (whose name is also given as Tajeddine in U.S. Treasury documents). He also runs another company, Congo Futur, which the U.S. government says is a front for Hezbollah. Congo Futur cites sawmilling as one of its businesses.
The U.S. Treasury Department put Congo Futur under targeted sanctions in 2010, saying the firm was part of a network of businesses ultimately controlled by Tajideen's three brothers, Kassim, Husayn and Ali, and that this generated "millions of dollars in funding" for Hezbollah.
The sanctions aim to block U.S. dollar transfers linked to the trio, part of wider U.S. efforts to counter what Washington sees as increasing business activity in Africa by Hezbollah, which it calls "among the most dangerous terrorist groups in the world". Hezbollah has denied U.S. accusations that it is linked to money-laundering and the international narcotics trade.
Ahmed Tajideen, who is not subject to U.S. Treasury sanctions, says his brothers have no share of Congo Futur or Trans-M and that the companies are neither directly related to each other nor act as front companies for Hezbollah.
"I am the majority shareholder of both companies," Tajideen told Reuters earlier this month.
"I created both companies independently of each other", he said. "My brothers have nothing to do with the companies".
EMBARRASSING FOR KABILA
But leaked U.S. diplomatic cables produced in 2000 quote Ahmed Tajideen as saying Congo Futur established Trans-M, which is also described as a "subsidiary" of Congo Futur on the website of Congo's official investment authority, ANAPI.
"The question for the Congolese government is whether they really want to continue doing business with a company that is linked to a terrorist organization?" said a U.S. official who monitors Congo, but asked not to be named.
John Sullivan, a U.S. Treasury spokesman, told Reuters that if Trans-M was majority owned by Congo Futur, it would face sanctions. He would not comment on the immediate status of Ahmed Tajideen or Trans-M.
"Treasury does not comment on possible enforcement actions or designations," he said.
The Trans-M forestry concessions are an embarrassment for the government of President Joseph Kabila, who was returned to office in last year's troubled presidential elections that were criticized by the United States as "seriously flawed".
Seraphim Ngwej, a senior advisor to president Kabila, told Reuters the U.S. government had not officially communicated any allegations about the concessions to Congo's government.
He said he would be willing to assist. "But there must be proof," Ngwej said.
Leopold Kalala Ndjibu-Kalema, a senior legal adviser to Congo's environment ministry, said in an official statement that there is "no concrete proof" that Trans-M is involved in Hezbollah activities and insisted its concessions had nothing to do with Congo Futur.
But a European Union-funded forestry publication in 2011 refers to Congo Futur as the "parent company" of Trans-M. Employees and a business partner of Congo Futur contacted by Reuters have also stated Trans-M is a "subsidiary" of Congo Futur and is owned by all the Tajideen brothers.
"WEAK STATES"
U.S. officials are concerned that Congo, whose location in the heart of Africa makes it important for the continent's stability, may become a safe haven for Hezbollah financiers looking to take advantage of weak financial regulation in the lawless and commodity rich central African giant.
"We do have major concerns about all weak states, and especially places like Congo," said one U.S. official who asked not to be named. "The attention here in Washington is pretty high," he added.
U.S. authorities last year put the spotlight on Hezbollah's Africa-based activities by unveiling a Drug Enforcement Administration (DEA) probe alleging the Iranian-backed group was involved in money laundering activities in West Africa linked to the narcotics and second hand car trade.
The Tajideen family has operated real estate, diamond export, supermarket and food processing businesses across Angola, Gambia and Sierra Leone and Congo for many years, the U.S. Treasury says.
West and Central Africa host significant and long-established Lebanese diaspora communities. But U.S. interest in the Tajideen family sharpened in 2003 when Belgian police raided the Antwerp offices of a company managed by Kassim Tajideen and accused it of "large scale tax fraud, money laundering and trade in diamonds of doubtful origin". No charges were brought in Belgium.
The U.S. Treasury made Kassim Tajideen subject to sanctions in 2009 and in 2010 also sanctioned Husayn Tajideen and Ali Tajideen, who it says was once a Hezbollah commander in Lebanon. The Treasury says Husayn and Ali are amongst Hezbollah's "top financiers in Africa".
A Hezbollah official declined to comment on the U.S. allegations. When the Treasury sanctioned some of the family's companies in 2010, U.S. citizens were barred from doing business with them. But some of the companies continued to operate freely in their host countries, including Congo Futur.
Israel has also expressed concern about what it says are growing Hezbollah financial interests in Africa.
Ron Prosor, Israel's ambassador to the United Nations, told the Security Council last month that he was particularly concerned that West Africa had become a "hub" for Hezbollah. But he did not refer to central Africa or Congo.
Powerful Israeli businessmen still retain good relations with president Kabila, notably Dan Gertler, a wealthy diamond merchant who controls numerous mining and other interests in Congo, many managed via offshore companies.
(Additional reporting by Jonny Hogg in Kinshasa; Editing by Pascal Fletcher)
See thé article online here: Exclusive: Congo under scrutiny over Hezbollah business links | Reuters
Cost overruns, write downs leave #Kinross Gold priced for takeover
Tags:
Commodities,
News
Cost overruns, write downs leave Kinross Gold priced for takeover
Conclusion: the article below published by Reuters this morning highlights the attractiveness of Kinross as an M&A target. BMO research shows that you can now buy Kinross and NOT pay anything for the growth assets ( Tasiast, FDN and Lobo-Marte).
Cost overruns, write downs leave Kinross Gold priced for takeover
With the miner's stock having fallen by nearly half since September, bankers see it a target for bigger players who are always on the hunt for deposits to replenish their reserves.
Author: By Pav Jordan and Euan Rocha
Posted: Monday , 19 Mar 2012
TORONTO (Reuters) -
Cost overruns and a massive writedown have knocked Kinross Gold's stock so low that some bankers see it as Canada's biggest potential takeover play, though obstacles to a bid for the senior gold producer may be too big to surmount.
Kinross, the world's seventh-largest gold miner, owns some huge, largely unexploited assets spread across four continents, making it an appealing target for bigger players who are always on the hunt for deposits to replenish their reserves.
Despite a huge reserve base its stock, which traded for nearly C$19 at the start of 2011, closed at C$9.90 on Friday as mounting concerns about the cost of developing its flagship project sapped investor confidence.
"We haven't seen anyone make a move on Kinross yet, but to me, I would think that for anyone who wants a company with a lot of growth assets, this makes a lot of sense," said Stifel Nicolaus analyst George Topping. "It's the cheapest senior by a long shot."
Bankers point to Barrick Gold and Goldcorp, Canada's top two gold miners, as companies with the means to consider an acquisition. U.S.-based gold mining giant Newmont Mining Corp was also named as a possible buyer.
On an in situ basis, the proven and probable gold reserves of Kinross are being valued by the market at less than $200 an ounce, well under Barrick's reserves at some $325 per ounce and even Newmont and Goldcorp at about $275 and $580 an ounce. Although this does not factor in capital and operating costs, it highlights the appeal for potential bidders.
At the BMO Global Metals and Mining Conference in Hollywood, Florida, last month, the future of Kinross was the subject of much speculation, from the meeting rooms to the bars.
Kinross Chief Executive Tye Burt got the ball rolling early, saying the company may consider selling its 50 percent stake in the Crixas underground gold mine in Brazil and its 25 percent stake in the Cerro Casale gold-silver-copper project in Chile.
"It was insane how many people were talking about a Kinross breakup at that conference," said one U.S. investment banker focused on the resource sector who spoke off the record because of company policy.
BLESSING TO BANE
But despite these selling points, bankers and analysts said that the factors keeping the stock appetizingly cheap may also drive prospective buyers away.
The main obstacles are the Tasiast gold mine in Mauritania and Chirano mine in Ghana, brought into the Kinross fold with considerable fanfare in its blockbuster $7.1 billion acquisition of Red Back Mining in 2010.
The assets have gone from being a blessing to a bane for the company, which has seen its market capitalization shaved nearly by half since September as concerns have mounted over the cost of developing Tasiast and other projects.
Kinross earlier this year said it would take a massive $2.94 billion non-cash goodwill impairment charge related to its acquisition of the Tasiast and Chirano mines.
"On a per ounce basis of reserves, they paid through the nose for Tasiast," Morningstar analyst Min Tang-Varner said of the asset, which now accounts for over 20 percent of the miner's combined gold reserves and resources.
"Time has passed and the market is just getting antsy," she said. "They've paid a steep price for it and we haven't seen anything that really justifies the acquisition price paid out."
Bankers said any acquisition approach for Kinross would likely have to be friendly because prospective buyers will want to see data on Tasiast before tabling an offer.
Kinross declined to comment about the takeover speculation.
"We would note that these rumors result from our share price being undervalued, which in turn suggests that Kinross currently presents a significant buying opportunity," said Steve Mitchell, the miner's head of corporate communications.
BIG SHAREHOLDERS COULD SPUR DEAL
Potential suitors for Kinross also have their own situations to consider before making a bid.
Barrick, the world's top gold miner, is still integrating the assets of copper miner Equinox, which it acquired for more than $7 billion less than a year ago. Another major takeover may not be well received by shareholders.
While some like Goldcorp's prospects as a buyer, skeptics note that the current assets of Kinross have much higher average operating costs. This means an acquisition would move Goldcorp up the cost curve, an unattractive prospect in a sector that is fighting to keep costs in check.
Goldcorp Chief Executive Chuck Jeannes has also stressed that his company intends to focus on growth in low-risk mining jurisdictions. The most promising Kinross assets are in more politically risky places like Ecuador and Russia.
Newmont, the world's second-largest gold miner, could be a more likely suitor, as the company may want new assets to sink its teeth into given setbacks on projects like Hope Bay in the Canadian Arctic and Conga in Peru.
Barrick, Goldcorp and Newmont all declined comment for this story, or were not immediately reachable.
In the end, the fate of Kinross may be decided by a handful of big institutional shareholders, who together control 20 to 30 percent of the stock in each of the four miners. If the Kinross share price stays depressed these investors could nudge management toward a deal.
Kinross typically holds its annual shareholder meeting in the first week of May. It has yet to set a date for this year.
"You can expect some shareholder activism in this case," said one Toronto-based investment banker, who declined to be identified because of company policy.
© Thomson Reuters 2012 All rights reserved
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