Company News

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

Dec 16 (Reuters) - A Glencore PLC-controlled mining company and some of its current and former executives have agreed to pay more than $22 million to settle Canadian allegations they hid the risks of doing business with an Israeli man close to Congolese President Joseph Kabila, the Wall Street Journal reported on Sunday.

The expected settlement between the Ontario Securities Commission and Toronto-listed Katanga Mining Ltd is related to the company’s business activities in the Democratic Republic of Congo between 2014 and 2016, the Journal reported, citing an anonymous source.

A Glencore spokesman declined to comment on the report.

The Canadian regulator is expected to name several of Katanga’s current and former executives in the settlement and will focus on Katanga’s ties with Israeli businessman Dan Gertler, who first invested in Katanga alongside Glencore in 2008, the report said.

The settlement is also expected to allege that Katanga overstated copper production, understated mining costs and lacked proper internal financial controls, the report said. (Reporting by Caroline Stauffer Editing by Paul Simao)