WSJ: Canadian regulator to fine Glencore-controlled miner over Congo

OTTAWA: A Glencore-controlled mining company and some of its current and former executives have agreed to pay more than US$22mil 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 (OSC) and Toronto-listed Katanga Mining Ltd is related to the company’s business activities in Congo between 2014 and 2016, the WSJ reported, citing an anonymous source.

A Glencore spokesman declined to comment. The OSC did not immediately respond to a request for comment.

Glencore’s share price rose around 1% by 0927 GMT, while the broader mining index was 1.4% 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.

A statement from Katanga in 2017 said the OSC was reviewing whether the company’s previously filed financial statements “contain statements that are misleading in a material respect”.

Katanga had said the OSC was also investigating whether Katanga’s corporate governance practices were adequate and the “related conduct” of certain unidentified company directors and officers.

Glencore has faced a series of legal issues related to its activities in Congo, which has almost 60% of the world’s supply of cobalt. — Reuters