VANCOUVER, CANADA – An initial story published by Bloomberg News on July 18, 2017, misleads readers with its headline, erroneous reporting and the omission of critical contextual facts that were known to the news organization.
A second story, also published on July 18, contains a false allegation by Bloomberg that Ivanhoe Mines had corrected as part of a detailed statement of facts delivered to Bloomberg seven weeks ago.
On May 26, 2017, Ivanhoe Mines provided a letter to Bloomberg reporter Thomas Wilson that set out critical information related to a planned story that subsequently was published by Bloomberg early on July 18. It became apparent after the story was published that much of Ivanhoe’s factual information had been excluded, which Bloomberg indicated was due to “the limitations of the length of the story.” Of course, this deliberate withholding of critical details was not revealed to Bloomberg’s readers.
A review of the facts shows that Bloomberg’s omission of information makes the initial story misleading and one-sided. Basic journalistic principles of truth, accuracy and balance never should be compromised, particularly just to satisfy a predetermined limit on a story’s length.
This public statement by Ivanhoe Mines is intended to provide readers with relevant information ignored by Bloomberg’s reportorial short-cuts that sacrificed facts and completeness in an apparent determination to sensationalize. Bloomberg’s tactics succeeded in misrepresenting Ivanhoe Mines and its business successes in the Democratic Republic of Congo (DRC) in a prejudiced and harmful manner.
The truth, also not acknowledged by Bloomberg, is that Ivanhoe’s significant successes in the DRC have been founded on a 14-year commitment to international standards of professional exploration along the Central African Copperbelt. The facts prove that Ivanhoe’s first discovery in 2008, and subsequent discoveries, had nothing to do with relatively recent business transactions, as alleged by Bloomberg.
Bloomberg withheld essential facts about Ivanhoe’s DRC contracting procedures
Bloomberg knew, and failed to report, that Ivanhoe Mines is committed to using and supporting local DRC companies and service providers as part of its established business practices.
Bloomberg also knew, and also failed to report, that Ivanhoe always has adhered to a fair and objective tendering, procurement and adjudication process for all capital and construction-type contracts at all of its exploration and development projects. When the tender is material or involves technical matters, it is administered by Ivanhoe’s independent engineering, procurement and construction management (EPCM) companies that have the facilities and expertise to perform this task according to industry best practice. When they are supervising the tender, the EPCM companies prepare the tender, receive and review bids, and adjudicate and recommend the preferred bidder. Successful bidders are selected according to industry-standard parameters that include capability, expertise, quality, schedule and price.
Basic procurement tenders (for services such as fuel supply) are run by Kamoa Copper SA. Ivanhoe currently has a 39.6% indirect ownership percentage in Kamoa Copper following Ivanhoe’s transaction with Zijin Mining in December 2015 and its landmark agreement with the Government of the DRC of November 2016.