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Glencore entered into deals with Iranian entities: Century

Keywords: Tags  Century Aluminum, Glencore, Iran, sanctions, U.S. Securities and Exchange Commission, SEC, Southwire Co., BHP Billiton aluminum

CHICAGO — Affiliates of Glencore International Plc, Century Aluminum Co.’s largest shareholder, were involved in transactions made with entities that are fully or partly controlled by the Iranian government, according to a Century filing with the U.S. Securities and Exchange Commission (SEC).

Non-U.S. affiliates of Glencore in 2012 entered into sale and purchase contracts with Iranian entities for metals and metal oxides, as well as sales contracts for wheat and coal, the Monterey, Calif.-based aluminum producer said in an annual report filed March 18 with the SEC, citing information provided by Glencore.

A spokesman for Baar, Switzerland-based Glencore declined to comment or elaborate on Century’s annual filing. “It’s exactly how it is in the 10-K (filing),” the spokesman told AMM March 19.

Under the Iran Threat Reduction and Syria Human Rights Act of 2012, which President Barack Obama signed into law Aug. 10, 2012, companies must disclose whether they or any of their affiliates have knowingly engaged in transactions involving Iran, Century said in the filing. While Glencore might be considered an affiliate of Century, the aluminum producer “has no control over (Glencore’s) actions or the actions of its affiliates,” the filing said.

“Century and its global subsidiaries had no transactions or activities requiring disclosure under (the act), nor were we involved in the transactions described” by Glencore in the filing, Century said.

Glencore and its affiliates conducted all transactions with Iran in compliance with applicable sanction laws and with necessary approvals by government authorities, Century said in the filing. Transactions made by Glencore and its non-U.S. affiliates did not violate sanction laws administered by the U.S. Department of Treasury or the Office of Foreign Asset Control and “are not the subject of any enforcement actions under Iran sanction laws,” the company said.

Glencore, which holds a 46.6-percent stake in Century, also supplies the company with alumina, according the SEC filing.
Century recorded net sales of $552.3 million from Glencore in 2012. That is 59.5 percent more than the $346.3 million in sales booked with Century’s second-largest customer, Southwire Co., and more than double the $202.5 million Century logged in net sales from its third-largest customer, BHP Billiton Plc.

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