BHP uncovers "possible" corruption

AFP, Dow Jones | Wed, 21 Apr 2010 10:15

[miningmx.com] -- The world's top miner BHP Billiton said Wednesday it has uncovered evidence of possible corruption linked to mineral exploration projects and has handed the information to US authorities.

The Anglo-Australian giant said it was also conducting an internal probe into the matter, which involves "interaction" with government officials surrounding certain "terminated exploration projects.

"The company has disclosed to relevant authorities evidence that it has uncovered regarding possible violations of applicable anti-corruption laws involving interactions with government officials," a statement said.

"Accordingly, the company is cooperating with the relevant authorities including conducting an internal investigation, which is continuing."

A spokeswoman refused to reveal where the alleged violations took place but said it was not China, where four Rio Tinto staff were jailed for bribery and commercial espionage last month.

She said the US Securities and Exchange Commission (SEC) had requested information related to "relatively small" exploration contracts which were terminated about a year ago.

"We're talking about a couple of relatively small minerals exploration projects, the last of which was terminated about a year ago on commercial grounds," the spokeswoman told AFP.

"Only after that, in August last year, did we get an inquiry from the SEC asking us to do some internal investigations, which we did commence at that point.

"We have recently uncovered some evidence we have given to the SEC, and we are involved in ongoing internal investigations and cooperating fully with the SEC on this issue."

Australian Broadcasting Corp. reported that the investigations did not relate to BHP's operations in China and do not involve its sales or marketing of commodities, the Associated Press said.

London's Timesonline website quoted Michael Bush, the head of fixed income credit research at National Australia Bank, as saying: "The fact that the investigation applies to expired mineral exploration tenements is infinitely preferable to if it had applied to marketing or sales activities, which would have potentially far wider ranging implications.”

“This is obviously an event that BHP will wish had not occurred and may have implications for its ability particularly to undertake exploration activities in the relevant jurisdiction,” he told the Times.