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
The department said it learned that several
companies, including Glencore Xstrata and Amsterdam,
Netherlands-based Trafigura Beheer BV may have made trades with
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
Glencore Xstrata told AMM it does comply with
applicable laws and regulations, including applicable
"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
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.
Trafigura concluded all outstanding Iranian oil deals well in
advance of the July 1, 2012 European sanctions deadline, she
The Trafigura group of companies "are compliant with national
and international law where applicable", the company
Editor's note: This story was updated Aug. 30 to include a
statement from Glencore Xstrata Plc.