Glencore to work with US
Glencore says it will co-operate with US authorities after they demanded documents about the mining firm’s business in Democratic Republic of Congo, Venezuela and Nigeria as part of a corruption investigation.
Glencore said on Wednesday it would co-operate with US authorities after they demanded documents about the mining firm’s business in the Democratic Republic of Congo (DRC), Venezuela and Nigeria as part of a corruption investigation.
The company said it had set up a committee of board members, including chairman Tony Hayward and independent nonexecutive directors Leonhard Fischer and Patrice Merrin, to oversee its response to the subpoena from the US Department of Justice (DoJ).
Hayward said that the company would “co-operate with the DoJ, while continuing to focus on our business and seeking to maximise the value we create for our diverse stakeholders in a responsible and transparent manner”.
“Glencore takes ethics and compliance seriously throughout the group,” he added.
Switzerland-based Glencore received a subpoena from the DoJ last week requesting documents and records on compliance with the US Foreign Corrupt Practices Act and moneylaundering statutes.
THE COMPANY WILL CO-OPERATE WITH THE JUSTICE DEPARTMENT, WHILE CONTINUING TO FOCUS ON OUR BUSINESS
The US Foreign Corrupt Practices Act makes it a crime for companies to bribe overseas officials to win business.
The DoJ has so far not commented on the request.
Glencore shares had fallen 4.2% to 313.29 pence on Wednesday, down 20% since the start of 2018 and close to one-year lows.
The stock suffered its biggest one-day fall in more than two years after the subpoena announcement last week.
Responding to the share fall, Glencore announced a buyback worth about $1bn in an effort to soothe investors.
Some analysts say the US subpoena could be a result of Glencore settling a mining row in the DRC with Israeli billionaire Dan Gertler, under US sanctions since 2017, by agreeing to pay royalties in euros.
The DRC accounts for about 25% of Glencore’s net present value, analysts said, adding that Venezuela and Nigeria’s contribution was negligible. The firm mines cobalt in the DRC, a key metal used to make batteries for electric vehicles.