Glencore PLC (GLEN.LN) said Monday that it has nominated three directors to Katanga Mining Ltd. (KAT.T) to carry out measures to strengthen Katanga's corporate governance, compliance and control processes.
The natural resources firm, which owns around 86% of Katanga, announced the move in response to Katanga's statement that it had completed a review of certain historic accounting practices which lead to a restatement of its earnings.
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Katanga's review identified accounting practices that, among other things, incorrectly recorded the total tonnage of finished copper cathode production. This resulted in an overstatement of finished product inventories and incorrectly recorded the valuation of copper concentrate included in work-in-progress inventories, the valuation of ore in stockpile inventories and the amounts of property, plant and equipment during 2016, 2015 and prior periods, Katanga said.
Glencore added that the adjustments to Katanga's accounts won't have any material effect on its consolidated income, financial position or cash flows.
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(END) Dow Jones Newswires
November 20, 2017 03:14 ET (08:14 GMT)