Glencore appoints CFO to Katanga board after internal review

Glencore said on Monday that it has nominated three new directors to the board of copper producer Katanga following the completion of an internal review of the group's accounting practices and the restatement of its financial statements.

Glencore said it had identified "material weaknesses" in Katanga's internal controls over financial reports. Following the resignation of three directors, it has nominated three new directors to the board, including Steven Kalmin - Glencore's chief financial officer - to work with the independent directors of Katanga to implement the required remediation measures to strengthen its corporate governance, compliance and control processes.

"Glencore is committed to ensuring that the weaknesses identified in the Review are addressed and do not reoccur," the company said, adding that adjustments arising from the review do not have a material adverse impact on its consolidated income, financial position or cash flow.

Glencore has an 86% interest in Katanga, which operates a large-scale copper-cobalt project with substantial high-grade mineral reserves and integrated metallurgical operations in the Democratic Republic of Congo.

At 1000 GMT, Glencore shares were down 1% to 349.80p.