/ 11 July 2018

Glencore to cooperate with US justice dept probe

Glencore in Zambia has agreed with unions to a 10% pay rise for workers.
Glencore in Zambia has agreed with unions to a 10% pay rise for workers.

Glencore has said it will cooperate and provide the documents requested for an investigation by the US justice department (DOJ).

Bloomberg previously reported that the mining company was subpoenaed by the US department to produce documents with respect to compliance with the Foreign Corrupt Practices Act and United States money laundering statutes. Glencore’s share price fell as much as 11% with the news on July 3.

According to a notice issued to shareholders on Wednesday, Glencore said the documents related to its business in Nigeria, the Democratic Republic of Congo (DRC) and Venezuela from 2007 to the present.

READ MORE: Mining giant Glencore facing US corruption probe

Glencore has also established a committee of the board to oversee the company’s response to the subpoena.

The committee includes chairman, Tony Hayward, and independent non-executive directors Leonhard Fischer and Patrice Merrin, the statement read.

“Glencore takes ethics and compliance seriously throughout the group. The company will cooperate 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,” said Hayward.

Glencore’s share price, which opened at R56.51 on Wednesday morning, was 3.81% lower at R56.12 by 11.10am, after the notice was issued. — Fin24