{"id":1188053,"date":"2020-06-03T09:01:00","date_gmt":"2020-06-03T14:01:00","guid":{"rendered":"https:\/\/www.mining.com\/?p=1025975"},"modified":"2020-06-03T09:01:00","modified_gmt":"2020-06-03T14:01:00","slug":"belgium-expands-probe-into-zinc-miner-nyrstar","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1188053","title":{"rendered":"Belgium expands probe into zinc miner Nyrstar"},"content":{"rendered":"

Belgium’s Financial Services and Markets Authority (FSMA) has broaden a probe kicked off in September into zinc firm Nyrstar NV that is looking into possible ties between the company and Trafigura, the world\u2019s No.2 metals trader.<\/p>\n

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Initial investigation focused on Nyrstar’s commercial relationship with Trafigura, but now it includes two other aspects.<\/p>\n<\/blockquote>\n<\/figure>\n

Geneva-based Trafigura took control of Nyrstar in early 2019 as part of a restructuring process that all but wiped out other shareholders. Investors ended up owning stakes in a new firm that controls about 2% of Nyrstar with Trafigura holding the rest.<\/p>\n

Belgium\u2019s financial services regulator first focused the investigation on whether Nyrstar provided sufficient information to shareholders about Trafigura\u2019s offer.<\/p>\n

It has now expanded the probe to include two other aspects. \u201cThese are the provision of information about the expected profit contribution from and the total costs for the Port Pirie smelter in Australia, and of information about the company’s solvency and liquidity position at the end of 2018,\u201d it said in a Friday statement, updated today<\/a>.<\/p>\n

Deloitte, which acted as the auditor for Nyrstar, had previously warned that incomplete disclosures relating to supply deals with Trafigura could affect Nyrstar\u2019s financial reports.<\/p>\n

Nyrstar’s downfall<\/strong><\/h2>\n

The zinc producer\u2019s financial troubles began around 2010, when management embarked on a debt-fuelled spree of mining acquisitions. Prices for the metal dropped by 26% in 2018, leaving the company in no position to make a bond repayment.<\/p>\n

Nyrstar said at the time that asset write-downs, \u201csevere deterioration\u201d in the global economy and lower zinc treatment charges were among the reasons for its collapse.<\/p>\n

Currently, the firm is the world\u2019s second largest zinc producer and one of the biggest zinc smelting companies. It has operations across northern Europe, the United States and Australia. Its mines are located in North America.<\/p>\n","protected":false},"excerpt":{"rendered":"

The country’s Financial Services and Markets Authority (FSMA) initially focused the probe on Nyrstar’s commercial relationship Trafigura.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1188053"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1188053"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1188053\/revisions"}],"predecessor-version":[{"id":1188100,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1188053\/revisions\/1188100"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1188053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1188053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1188053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}