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Glencore hit with US subpoena over alleged money laundering | |
(about 2 hours later) | |
Glencore, the world’s biggest mining company, faces a potential investigation by US authorities for alleged money laundering, after being ordered to hand over documents to the US Department of Justice. | |
Shares in the Anglo-Swiss firm fell more than 11% in London, wiping more than £5bn off its market value. | |
The subpoena relates to compliance with the Foreign Corrupt Practices Act and US money laundering laws, Glencore said. | The subpoena relates to compliance with the Foreign Corrupt Practices Act and US money laundering laws, Glencore said. |
The investigation is centred on business dealings in Nigeria, the Democratic Republic of Congo and Venezuela, and date from 2007 to present. | The investigation is centred on business dealings in Nigeria, the Democratic Republic of Congo and Venezuela, and date from 2007 to present. |
“Glencore is reviewing the subpoena and will provide further information in due course as appropriate,” the company said in a brief statement. | “Glencore is reviewing the subpoena and will provide further information in due course as appropriate,” the company said in a brief statement. |
The company has copper and cobalt operations in Congo, and trades with Nigeria and Venezuela. It accounts for more than a quarter of the world’s cobalt output, most of it from Congo. Cobalt is used in batteries for electric vehicles and mobile phones. | |
The Paradise Papers revealed last year that Glencore secretly loaned tens of millions of dollars to an Israeli billionaire, Dan Gertler, after it enlisted him to secure a controversial mining agreement in the Democratic Republic of the Congo. | The Paradise Papers revealed last year that Glencore secretly loaned tens of millions of dollars to an Israeli billionaire, Dan Gertler, after it enlisted him to secure a controversial mining agreement in the Democratic Republic of the Congo. |
A human rights watchdog, Public Eye, filed a criminal complaint against Glencore in Switzerland, where the company is based, following the revelations. | |
US sanctions on Gertler, Glencore’s former Israeli partner, triggered litigation in Congo that threatened to disrupt supplies of cobalt from the world’s biggest producer of the metal. | US sanctions on Gertler, Glencore’s former Israeli partner, triggered litigation in Congo that threatened to disrupt supplies of cobalt from the world’s biggest producer of the metal. |
Glencore recently settled a mining dispute with two companies associated with Gertler by agreeing to pay royalties in euros rather than dollars. | |
The group also reached a settlement in another dispute involving its Kamoto copper and cobalt mine in the country, but remains at odds with the Congolese government over a new mining code. | |
Peter Jones, campaign leader at the NGO Global Witness, said: “It is vital that any wrongdoing is brought to light and that those responsible are held to account. It looks like full scrutiny may finally be focused on Glencore’s dealings.” | |
Glencore and Gertler have consistently denied any wrongdoing in their business deals. | Glencore and Gertler have consistently denied any wrongdoing in their business deals. |
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