MagIndustries is a Canadian potash mining company operating in the Republic of Congo, majority owned by China-based Evergreen Holding Group.
Besides the main asset there were varied business interests under separate divisions including MagEnergy (refurbishment of the Inga II dam in the DRC); MagForestry (a 68,000 hectare eucalyptus plantation located on the surface of the area where the company held mineral rights); MagMinerals (a potash processing plant near Pointe-Noire); and MagMetals (magnesium smelter next to the potash processing plant).
[3] The primary business of MagIndustries became potash rather than magnesium with namesake mineral of the company relegated to a secondary consideration.
[5][6] The Mengo potash project moved along rapidly in 2007-2009 with favorable developments in financing, fuel supply, marketing, tax, permitting, design and pre-construction.
The company entered into a mining investment agreement for the project with the Congolese government in March 2008 under which a tax holiday of 10 years was negotiated.
[7] In April 2008 it closed second tranche of a private placement that raised $100 million for the development of the Mengo potash project.
[5][11] It raised $26 million in June 2009 through issuance of new shares to tide over the continuation of Phase 1 development as finding debt financing became prolonged.
[12] In 2011, Evergreen Holding Group, a private Chinese shipbuilder, purchased 76% of the shares of the company for $115 million, and became the controlling shareholder.
On March 5, 2010 Willy Verbrugghe CEO of MagMinerals filed a statement of claim with the Ontario Superior Court of Justice court file # CV-10-398535 against Magindustries claiming wrongful dismissal for confronting Mr. Burton CEO of Magindusties about his foreign bribes and insider trading.
In or about April or May 2008, Verbrugghe learned that Magindustries was illegally providing compensation to government officials in the Democratic Republic of Congo and was party to insider trading.
The optics between Canada and China were too much for little spud to handle and he did not interfere with this investigation by ordering the RCMP to drop it and sweep it all under the rug.
It was an isolated event when there was an attempt to medal in the justice system to give SNC Lavalin Inc. a free pass on its bribery crimes.
The company was finally investigated by the Royal Canadian Mounted Police for making corrupt payments to Congolese officials IN JANUARY OF 2015.
Don't forget to check out the RCMP search warrant as it paints a clear picture of what kind of corrupt people were involved https://www.documentcloud.org/documents/2089559-rcmp-search-warrant-ito-for-magindustries-hq.html.
https://financialpost.com/commodities/mining/magindustries-reveals-evidence-that-company-paid-major-bribes-in-republic-of-congo Ultimately, no charges were laid by the RCMP against the company or individuals in connection to the Congolese bribery allegations.
Pursuant to the project, the company entered into an investment agreement with the Congolese government in late 2008 to construct and operate a mine within the license area for at least 25 years.
[10][16] The company's MagForestry division oversaw the operations of a 68,000 hectare eucalyptus plantation that produced woodchips for biomass plants.
In May 2016, the Chinese Ambassador Xia Huang and Congolese Minister of Forestry Henri Djombo jointly toured the plantation to diagnose the problems.
Djombo bombastically proclaimed Congolese were the inventors of eucalyptus cultivation and openly considered transferring the forestry rights held by MagIndustries to Moroccan investors.