Canadian regulator to consider Katanga settlement proposal Tuesday
LONDON – A Canadian regulator will consider on Tuesday whether to accept a proposal from Katanga Mining to settle allegations related to the Glencore-controlled company's activities in Democratic Republic of Congo.
Katanga said in a statement on Monday it could not give details of the proposal until after the hearing, at which the Ontario Securities Commission (OSC) will consider whether a global settlement with Canadian-listed Katanga is in the public interest.
Glencore declined to comment.
OSC's statement of allegations, reviewed by Reuters, alleges Katanga Mining made "financial disclosure that was misleading in a material respect".
The Wall Street Journal reported on Sunday that Katanga had agreed to pay more than $22-million to settle the Canadian allegations.
Last year, after an internal review into Katanga identified weaknesses in its financial reporting controls, three Glencore executives, including Aristotelis Mistakidis, the head of its copper group, stepped down from the board of Katanga.
Mistakidis, one of Glencore's most senior executives, retires at the end of the year, Glencore announced earlier this month.
Glencore has faced a series of legal problems related to its activities in Congo, which is home to almost 60% of the world's supply of cobalt, a mineral expected to be in demand for batteries used in electric vehicles.
In an emailed statement, Moody's credit agency said the OSC case had no bearing on Glencore's credit rating and the expected settlement was equivalent to around one day of free cash flow generation from the Glencore group.
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