Glencore corporation reports decrease in annual profit, issues with Kazakhstan and Congo authorities
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.
Glencore 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.
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.