Europe’s top copper producer Aurubis AG said a massive scam involving shipments of scrap metal cost it €185 million.
Aurubis said last month that it had discovered a significant metal shortfall, adding that it believed some of its suppliers had manipulated details about the scrap metal they provided and had been working with employees in the company’s sampling department to cover it up.
The global metals industry has been rocked in recent years by a series of scandals, including the shock revelation by commodities trader Trafigura Group that it was the victim of an alleged nickel fraud.
Aurubis said it expects insurance payments to cover about €30 million and it will also recoup some loses from seized assets.
The company said it now expects operating earnings before taxes of €310 million to €350 million compared to its earlier forecast of €450 million to €550 million for the 2022-23 financial year.
Photograph: Recycled metal; Photo credit: Luke Sharrett/Bloomberg
- Another Metals Trading House Says It Has Been Hit by a Nickel Fraud
- Billionaire Reuben Brothers Sue Trafigura Over Nickel Fraud
- Commodity Trader Trafigura Faces $577 Million Loss After Uncovering Nickel Fraud
- Commodities Trader Mercuria Buys $36M of Copper, but Gets Cargo of Painted Rocks
- ED&F Man Wins Claim Against Singapore Commodities Trader in $283M Metals Fraud
- Metals Financing Fraud Lawsuits Reveal Risks of Relying on Paper Receipts
- Commodities Broker Files $284M Suit Alleging Metals Fraud – in Echo of Natixis/Marex Case
- Marex Spectron’s Metals Financing Deal Triggers Fraud Lawsuit, Insurance Dispute
Was this article valuable?
Here are more articles you may enjoy.