Home World Glencore follows Unicredit’s misfortunes in Kazakhstan operations with profits cut by fines and low demand

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.

Dan Gertler and DRC govThe 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.


About the author: Rick Culpepper

Rick Culpepper is of those journalists who dig the topic to the very bottom. He is often late with the delivery of the piece, but always does it perfectly. In his spare time, he collects data for one of the most high-profile investigations of corruption in the EU.

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