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Glencore has nominated three new directors to the board of Katanga Mining, the African copper producer it controls, including its chief financial officer Steven Kalmin.
The Swiss-based commodity trader and miner said it was moving to strengthen internal controls over accounting at Katanga after the Canadian-listed company was forced to restate its accounts.
An independent review, launched earlier this year, found that Katanga has misstated copper production as well as the value of inventories. Details of the review were released on Monday.
Glencore said in a statement:
Following the resignation of three Katanga directors, Glencore has nominated three new directors to the Board of Katanga, including Steven Kalmin, to work with the independent directors of Katanga to implement the required remediation measures to strengthen Katanga’s corporate governance, compliance and control processes.
Glencore will also be implementing various structural and control changes across its copper department in order to enhance and strengthen its financial processes and procedures. Glencore is committed to ensuring that the weaknesses identified in the review are addressed and do not reoccur.
Glencore owns 86 per cent of Katanga, which in turns owns one of the world’s most highest grade copper projects. After a significant investment programme the mine, which is also a significant producer of cobalt, is set to reopen next year.
Glencore said the restatement of accounts would not affect the completion of the upgrade project at Katanga and there would not be a material impact on the financial position of cash flows of the group.
However, the company said it had been advised Canadian regulators were reviewing Katanga’s risk disclosure in connection with applicable requirements under certain international bribery, government payment and anti-corruption laws.