The European Investment Bank has frozen all new loans to Swiss-based commodities firm Glencore and its subsidiaries, citing "serious concerns" over corporate governance.
This content was published on
2 minutes
swissinfo.ch and agencies
The EIB, the European Union’s lending institution, provided a $50 million (SFr42 million) loan in 2005 to Mopani Copper Mines, a Zambian subsidiary of Zug-based Glencore, to help pay for modernisation work.
But Mopani has since been accused by some non-governmental organisations – most recently campaign groups in an open letter signed by a group of European parliamentarians – of tax evasion and of causing widespread pollution.
Glencore has denied the allegations, which stem from a leaked version of a pilot audit report commissioned by the Zambian tax authorities. The EIB has commissioned its own independent probe into the matter.
“We welcome the EIB taking a close look at Mopani, since we are confident that we will be completely exonerated,” a spokesman for Glencore said on Wednesday.
Glencore, the world’s largest diversified commodities trader, listed on the London stock exchange in May in a record-breaking market debut. The initial public offering raised some $10 billion.
Mopani, in which Canada’s First Quantum owns a minority stake, has generated over $380 million in tax payments to the Zambian government since its privatisation in 2000, through royalties, duties and income taxes.
Popular Stories
More
Swiss Abroad
How centuries of Swiss emigrants left their mark on the US
Bodycams: essential for good law enforcement, or a privacy risk?
Did you ever come across bodycams in your place of residence and if so, how do you think the use of bodycams alter the relationship between the public and (transport) police?
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Glencore IPO brings in $10 billion
This content was published on
Based in Baar in canton Zug, the company set the final share price on Thursday; it falls in the middle of the 480-580 pence range that Glencore had announced in early May. At this price, the world’s biggest commodities trader will be worth $59 billion. Last year its revenue was $145 billion. “Glencore’s offer has…
This content was published on
The long-awaited listing on the London and Hong Kong stock exchanges is expected to fetch up to $11 billion (SFr9.8 billion) for new acquisitions. However, the move was not welcomed by pressure groups that accuse the firm of exploiting developing countries. Canton Zug-based Glencore has established itself as a powerhouse in the oil, minerals, metals…
This content was published on
Daniel Ammann, who interviewed Rich extensively for his book, The King of Oil, told swissinfo.ch how an oil pipeline through Israel – a joint venture between Iran and Israel – was one of Rich’s greatest successes at a time when the two countries were seemingly impossible trading partners. Rich, aged 74, who lives on the…
This content was published on
Recycle Art creates magnificent figures using scrap metal salvaged from the junk yard. Dozens of sculptures are on display at the showroom in canton Aargau. (Images: Susan Vogel-Misicka, swissinfo.ch)
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.