CHICAGO Affiliates of Glencore Xstrata Plc, Century Aluminum Co.s largest shareholder, continued in 2013 to be involved in transactions with entities fully or partly controlled by the Iranian government, according to a Century filing with the U.S. Securities and Exchange Commission (SEC).
That disclosure comes in the wake of the New York State Department of Financial Services seeking information regarding reinsurers compliance with the Iran Freedom and Counter-Proliferation Act of 2012 (IFCPA), which the department said became effective July 1.
Non-U.S. affiliates of Glencore in the second quarter ended June 30 entered into sales contracts for agricultural products as well as purchase contracts for metals, the Chicago-based aluminum producer said in a filing dated Aug. 9 and signed by Century president and chief executive officer Michael Bless.
Century in March disclosed that Baar, Switzerland-based Glencore had been involved in sales and purchase contracts with Iranian entities for metal and metal oxides (amm.com, March 20). While Glencore might be considered an affiliate of Century, the aluminum producer has no control over (Glencores) actions or the actions of its affiliates, Century said in the Aug. 9 filing.
The IFCPA imposes sanctions on companies providing services, insurance or reinsurance to Iranian entities or individuals on which sanctions have been imposed, the Department of Financial Services said.
The department said it learned that several companies, including Glencore Xstrata and Amsterdam, Netherlands-based Trafigura Beheer BV may have made trades with Iranian entities.
While these particular transactions may not have violated the sanctions regimes in place in the relevant countries at the time, engaging in a similar transaction now could be found to violate the IFCPA, the department said in a letter dated July 24.
Glencore Xstrata told AMM it does comply with applicable laws and regulations, including applicable sanctions.
"We are closely monitoring all new legal developments to ensure that we continue to be in compliance with applicable laws and regulations, including applicable sanctions," a Glencore spokesman told AMM in a statement Aug. 30.
Trafigura told AMM that no Iranian deliveries have been made or exports received by its non-ferrous and bulk business since new European sanctions were published in December 2012.
Furthermore, Trafigura said it withdrew from initiating any new oil business in Iran in January 2012 and has not exported Iranian crude oil for some years, a spokeswoman said in an Aug. 29 statement.
Trafigura concluded all outstanding Iranian oil deals well in advance of the July 1, 2012 European sanctions deadline, she added.
The Trafigura group of companies "are compliant with national and international law where applicable", the company said.
Editor's note: This story was updated Aug. 30 to include a statement from Glencore Xstrata Plc.