Glencore shares under cloud after U.S demands Congo documents in probe – by Zandi Shabalala (Reuters U.S. – July 12, 2018)

LONDON (Reuters) – A U.S. demand for documents related to Glencore’s (GLEN.L) assets in Democratic Republic of Congo (DRC) as part of a corruption probe has rattled investors and is likely to weigh on the miner’s performance until there is more clarity on the case.

Glencore said it had received a subpoena from the U.S. Department of Justice dated July 2 requesting documents for its Congo business over compliance with the U.S. Foreign Corrupt Practices Act and rules against money laundering.

The Switzerland-based company, which said documents for Venezuela and Nigeria were also requested, provided few details, although it said it would cooperate with the authorities.

News of the subpoena led to the biggest one-day drop in the firm’s share price for two years. Glencore is now down about 20 percent so far this year, trading around 314 pence on Thursday.

By comparison, shares in London-listed mining rivals Rio Tinto (RIO.L), Anglo American (AAL.L) and BHP (BLT.L) are up between 2 and 9 percent.Glencore declined to comment when asked about the impact on the share price from the subpoena issue.

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