By Jonathan Stempel
NEW YORK, July 26 (Reuters) – Glencore Plc GLEN.L agreed to pay $9.85 million to resolve a personal U.S. antitrust lawsuit accusing two models of the Anglo-Swiss mining firm of making an attempt to monopolize the marketplace for zinc, driving up its worth.
The preliminary settlement disclosed in a Friday night time submitting with the U.S. District Court docket in Manhattan would resolve litigation that started in Could 2014. It requires approval by U.S. District Choose Paul Engelmayer.
Zinc purchasers accused U.S.-based Glencore Ltd and Pacorini Metals USA Inc of conspiring from September 2010 to February 2016 to make sure lengthy queues for bodily zinc, or Particular Excessive Grade zinc, at warehouses licensed by the London Steel Alternate.
They stated this allowed Glencore to obtain larger storage charges and command elevated premiums when promoting zinc.
Glencore didn’t instantly reply on Monday to a request for remark. It has denied wrongdoing.
Zinc is used to coat metal to guard towards corrosion and can also be utilized in batteries, castings and alloys reminiscent of brass.
The U.S. Geological Survey stated zinc accounted for 7% of the nation’s $28.1 billion of steel mine manufacturing in 2019, trailing solely gold, copper and iron ore.
One other federal choose in 2016 dismissed associated claims by the zinc purchasers towards Goldman Sachs Group Inc GS.N and JPMorgan Chase & Co JPM.N.
The case towards Glencore was placed on maintain for greater than two years, till the federal appeals courtroom in Manhattan in August 2019 revived related price-fixing claims by aluminum purchasers towards Glencore, Goldman and JPMorgan.
Legal professionals for the plaintiffs led by Oklahoma Metal and Wire Co, Iowa Metal and Wire Co, Southwestern Wire Inc and Jasper Supplies Inc stated the zinc settlement was “substantively truthful” and adopted greater than three months of negotiations.
(Reporting by Jonathan Stempel in New York; Modifying by Marguerita Choy)
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