Chinese company says it is investigating the disappearance of Russian copper

Lina Portman3 weeks ago

1 1 minute read

(Bloomberg) — The Chinese state-owned company whose copper shipment from Russia went missing said it is investigating the matter that involves a monetary value of about 110 million yuan ($15 million).

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Wuchan Zhongda Group Co. purchased 2,000 tons of refined copper from a Russian company that should have been delivered last month but never arrived, Bloomberg News reported Thursday, citing people familiar with the matter.

In a statement Friday, the company said it had conducted a preliminary review following media reports regarding its copper operations. The case concerns an international trade subsidiary, it is specified.

“The company has a strong internal control system, capable of effectively managing and controlling risks related to business operations,” the statement said. The value involved is small compared to the group's revenue of more than 580 billion yuan last year, it added, and the incident “will not have a significant impact on the company's operations “.

The shipment was purchased from a Russian company called Regional Metallurgical Co. late last year, according to people familiar with it. But the metal was listed as much cheaper granite and likely ended up in Turkey, according to records of the shipping company that handled the shipment, the sources said, declining to be identified discussing a sensitive subject .