Three Glencore PLC executives have resigned from the board of its Toronto-listed subsidiary Katanga Mining Ltd. after an internal review found “material weaknesses” in its financial reporting controls, amid a regulatory probe by the Ontario Securities Commission (OSC).
On Monday, Switzerland-based Katanga announced it is restating a number of financial documents, including its consolidated financial statements for the 2015 and 2016 fiscal years, and its management discussion and analysis (MD&A) for the quarters ending March 31, 2017 and 2016. The company also said its chief financial officer, Jacques Lubbe, was stepping down.
Katanga owns copper and cobalt operations in the Democratic Republic of Congo and is majority owned by Glencore, a giant Anglo-Swiss metals and mining conglomerate.
In July, Katanga first announced it was conducting a review of its past accounting, and indicated some of its financial statements would likely be restated.
On Monday, Katanga said the review was prompted by the OSC, which had already started an investigation into the firm. The Canadian regulator is investigating whether the company’s previously filed financial statements were materially misleading.