Glencore PLC's Katanga Mining Ltd. and the Ontario Securities Commission agreed to settle a probe related to the company's business dealings in the Democratic Republic of the Congo for more than C$30 million, The Wall Street Journal reported Dec. 16, citing a person familiar with the matter.
The settlement is related to Katanga's activities in the DRC between 2014 and 2016, and the regulator is expected to name several current and former company executives in the settlement, which will focus on Katanga's relationship with Israeli business Dan Gertler, who has been sanctioned by U.S. authorities over corruption allegations.
The regulator is also expected to say Katanga lacked the proper internal financial controls, which led the company to overstating copper output and understating costs.
Among the individuals to be named are Glencore's Aristotelis Mistakidis, who was the mining major's representative to Katanga, along with Liam Gallagher and Tim Henderson. The settlement, which will also include Katanga CEO Johnny Blizzard resigning, is expected to be unveiled later this week at the earliest.
It was reported that Mistakidis, the billionaire head of Glencore's copper marketing unit and one of the company's largest shareholders with a 3.23% interest, will retire at the end of the year.
The commission will also allege that the miner breached Canadian securities law by failing to disclose the risks faced by using Gertler to maintain a relationship with DRC President Joseph Kabila.