Glencore plc
Glencore plc
Full text is available to Level 2 subscribers only
Subscribe to Mining Business Media
Mining Business Media's unique blend of global mining sector news and commentary is available by subscription only.
$A275 per year (1-10 users)
(GST included in Australia)
Direct debit/cheque/credit card:
Click here
Subscription inquiries, email subscribe@miningbusiness.net or call 61+413 772 044.
Related Content
Glencore has promised to cooperate with US authorities over an investigation into possible corruption and money laundering relating to its operations in Nigeria, DR Congo and Venezuela dating back to 2007.
The Swiss-based global commodities miner and trader has established a committee comprising chairman Tony Hayward and independent directors Leonhard Fischer and Patrice Merrin to oversee its response to the Justice Department subpoena.
At the same time, Hayward says Glencore will continue to focus on seeking to maximise the value of its business.
Global commodity trader/miner Glencore has been ordered by the US Department of Justice to hand over documents and records relating to its operations dating back to 2007 in Nigeria, DR Congo and Venezuela.
The subpoena relates to investigations into corruption and money laundering, citing issues relating to comliance with the US Foreign Corrupt Practices Act and money-laundering statutes.
The company says it's reviewing the subpoena.
Following its early $US6B settlement with disenchanted JV partner Gécamines, Glencore has agreed to pay over €80M a year in previously disputed royalties to controversial businessman Dan Gertlerrather than risk losing access to its two copper and cobalt operations in DR Congo.
Global miner-trader Glencore has followed up the settlement of its subsidiary Katanga Mining's dispute with DR Congo state miner Gecamines by backing off on a row with Israeli businessman Dan Gertler.
Glencore said in late April it would fight a bid by Gertler to freeze its DRC copper-cobalt assets over a royalties dispute.
After reconsidering, it now says it will pay the claimed royalties to avoid the risk of disrupting its operations.
A $US6B- plus debt-for-equity and compensation agreement between Katanga Mining and DR Congo state miner Gécamines removes the threat to Glencore's access to the giant Kamoto copper-cobalt project.
Katanga Mining has settled a bitter legal dispute with state-owned Gecamines that threatened to dissolve their JV over the Kamoto copper and cobalt mine in DR Congo.
The company, majority owned by Glencore, has agreed to convert $US6.5B owed to Gecamines by the JV operator Kamoto Copper to equity in the project. JV holdings will remain KML 75%, Gecamines 25%.
KML will also make payments and waivers of Gecamine costs amounting to over $500M.
(SOVEREIGN RISK) International miners set to assess legal action after DR Congo ignores their opposition to implement a hotly contested new mining code.
A Congolese-American businessman is seeking more than $US1B in a DRC court from 2 Glencore execs and their ex-partner in the Mutanda copper-cobalt mine in SE DRC, saying they defrauded him when he relinquished his shares, a court document shows, Reuters reports.
Glencore has denied $1B fraud claims against 2 execs over the sale of a cobalt-copper mine in DRC
Glencore has declined to comment on reports that Britain's Serious Fraud Office is preparing to open a formal bribery investigation into the leading global commodities miner and marketer.
Bloomberg quotes two people with knowledge of the matter the probe will focus on Glencore's activities with Israeli billionaire Dan Gertler, its former business partner in DR Congo.
The US imposed sanctions on Gertler in December over his alleged “corrupt mining and oil deals” in DRC.