Canadian regulator to fine Glencore-controlled miner over Congo – WSJ (Reuters U.S. – December 16, 2018)

https://www.reuters.com/

(Reuters) – A Glencore-controlled (GLEN.L) mining company and some of its current and former executives have agreed to pay more than $22 million to settle Canadian allegations they hid the risks of doing business with an Israeli close to Congolese President Joseph Kabila, the Wall Street Journal reported.

The expected settlement between the Ontario Securities Commission and Toronto-listed Katanga Mining Ltd is related to the company’s business activities in the Democratic Republic of Congo between 2014 and 2016, the Journal reported, citing an anonymous source.

A Glencore spokesman declined to comment. The Ontario Securities Commission did not immediately respond to a request for comment. Glencore’s share price rose around 1 percent by 0927 GMT, while the broader mining index was 1.4 percent higher.

The Canadian regulator is expected to name several of Katanga’s current and former executives in the settlement, which industrial sources said could be announced this week.

Investigations have included exploring Katanga’s ties with Israeli businessman Dan Gertler, the report said. The settlement is also expected to allege that Katanga overstated copper production, understated mining costs and lacked proper internal financial controls, it added.

For the rest of this article: https://www.reuters.com/article/us-glencore-congo/canadian-regulator-to-fine-glencore-controlled-miner-over-congo-wsj-idUSKBN1OF0Q0

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