The US is considering lifting sanctions against Israeli mining tycoon Dan Gertler

In order to let Israeli mining tycoon Dan Gertler leave the Democratic Republic of the Congo, the US Treasury Department is looking at lifting some of the penalties against him, a US official said on Thursday.

In December 2017 and June 2018, the US Treasury placed sanctions on Gertler and over thirty of his companies, alleging that he had used his friendship with former DR Congo president Joseph Kabila to get profitable mining agreements.

The official stated, “We are working to support the Democratic Republic of the Congo’s government as it works to remove corrupt actors from its mining sector.”

“We’ve said that we’re willing to look into a limited sanctions relief as a means of facilitating Daniel Gertler’s and his business operations’ total removal from the Democratic Republic of the Congo.”

The Wall Street Journal said on Thursday that the Congolese government had given the plan to Gertler earlier this week and is awaiting his reaction. The story said that the Biden regime and the DRC government had suggested lowering penalties on Gertler in exchange for his permanent departure from the nation.

According to the person, Washington wants to make it easier for major assets under Gertler’s control to be removed. Any potential reprieve from sanctions would need to be subject to stringent guidelines, including clauses that would make it easier for the measures to be reversed.

The official clarified that Gertler’s assets are still banned and that he is still subject to US penalties “for his corrupt actions.”

Washington aimed to assist Congo in its endeavors to enhance openness and financial prospects in its mining industry and broaden vital supply networks to augment worldwide safety and affluence.

The US has previously stated that Zambian and Congolese mineral resources are crucial to supplying the massive need for power infrastructure and clean energy components that will fuel the development of artificial intelligence worldwide.

The United States is concerned about China’s aggressive investment in Zambia, the Congo, and other parts of Africa.

The plan calls for Gertler to sell off his remaining interests in three massive copper and cobalt mining enterprises in the Democratic Republic of the Congo. It has infuriated human rights advocates and some government officials.

In return, Mr. Gertler would reportedly receive a “general licence” from the US that would allow him to once again access global financial markets.

However, the entire penalty can be applied anew if he is suspected of corruption once again.

The potential agreement coincides with US plans to apply tariffs, as part of a wave of protectionist posture by both Republicans and Democrats, on a variety of Chinese products, including sophisticated batteries and electric vehicles.

The New York Times reports that within the last week, Mr. Gertler’s attorneys were shown a plan that would enable him to liquidate his interests in Metalkol RTR, a government-owned company in Kazakhstan, and Kamoto Copper Company, which are both largely owned by Glencore, a company based in Switzerland.

Thirty percent of the world’s cobalt supply comes from just three mining operations. Cobalt is a key component of longer-range electric vehicles because it helps the batteries maintain more charge.

Additionally, they are important worldwide suppliers of copper, a metal that is becoming more and more in demand as new data centers with copper wiring are built in response to the artificial intelligence revolution.

The New York Times reports that although Mr. Gertler is no longer formally the owner of the Glencore mines—the firm bought him out in 2017—he continues to get royalties from the production of cobalt and copper at these sites.

The total estimated annual royalty payments received by Mr. Gertler’s business entities from Congo are currently estimated to be $110 million.