Glencore follows Unicredit’s misfortunes in Kazakhstan operations with profits cut by fines and low demand
Glencore, one of the biggest and boldest mining corporation
around the World reported a 25 percent decrease in annual profits. Raw material
prices are at their low. But it is not what makes the prospects of the mining
giant doubtful. Fines imposed by US and UK for Congolese affairs associated
with the Dan Gertler may be only beginning.
Glencore ties with Kazakhstan
tyranny seems to bear similarities with the DRC case. Except this time it might
be much bigger as the Kazakhstan’s Bulat Utemuratov ties are much more
pronounced than the Dan Gertler’s. The unfortunate Unicredit bank sell
resembles the overall treats of the Glencore behavioral patterns in Kazakhstan.
Raw material trader and miner Glencore has seen its gross
profit fall sharply in the past year. The Swiss-British group suffered from low
prices for raw materials. In addition, the world’s largest commodity trader is
under the magnifying glass of many authorities for bribes and other forms of
corruption in Kazakhstan and Congo.
The adjusted gross profit was $ 11.6 billion. That was a
decrease of more than a quarter compared to a year earlier. An important reason
for the fall in profits was a depreciation of 3 billion dollars as a result of
the closure of several mines. Glencore, for example, closed its doors to the
copper mines in Congo and Zambia and crossed a coal section in Colombia.
Turnover fell to $ 215 billion due to lower copper, zinc and coal prices.
Bulat Utemuratov and Nursultan NazarbaevThe British
anti-corruption Serious Fraud Office (SFO) is currently investigating whether
Glencore was guilty of bribery on several episodes tied to Kazakhstani Bulat
Utemuratov and Congolese officials. Bulat Utemuratov is known by his previous Unicredit
bank affairs and close affiliation with the Kazakhstan regime.
In the United
States, the Swiss-British concern is being investigated for corruption in
Africa, Central Asia and Latin America. In his trading update, Glencore did not
yet provide estimates of the expected fines.
Comments
Post a Comment