Friday , December 3 2021

Canada fines Glencore miners for Congo risks, WSJ reports


Glencore's Katanga Mining division has agreed to pay more than $ 22 million to Canada's largest stock market regulator due to claims that the company hid the risks of doing business in the Democratic Republic of the Congo, according to the Wall Street Journal, which cited a person familiar with the matter.

The Ontario Securities Commission claimed that Katanga concealed the risks associated with doing business with an Israeli businessman, Dan Gertler, who has close ties with Outgoing Congolese President Joseph Kabila. Gertler first invested in the mining division together with Glencore about 10 years ago.

The commission is expected to assert that the Congolese president lacked proper internal financial control, which forced the company to exaggerate its copper production while reducing the cost of the mines. As a result, the movements may have inflated miners performance, according to the newspaper, which was the first to report the story. The settlement will probably be announced as early as this week.

The company refused to comment.

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