This behind a paywall for me. Appreciate if someone could 12ft it and post it in here and here, for the database
https://thestockexchange.com.au/threads/reports-on-zijin-minings-violations.259614/
Zijin Mining’s WA subsidiary Norton Gold Fields to probe corruption claims
Norton Gold Fields says it has brought in lawyers to examine allegations some of its employees are extracting side payments from WA businesses, following an investigation by The West Australian.
The alleged racket centres on contractors and suppliers being coerced into paying certain Norton staff off the books to keep doing business with the Chinese company.
The West has sighted and verified a $47,540 invoice for “project planning, resources co-ordination and administration assistance” paid by one of the impacted contractors to a private entity owned by a current Norton employee, who for legal reasons cannot be named.
A Norton Gold Fields spokeswoman on December 11 said the company is taking the allegations “extremely seriously” following queries by The West and “has taken immediate action” after its preliminary assessment of the claims.
“Norton has engaged law firm HFW Australia to fully investigate the allegations which have been made against a small number of employees,” she said.
“Norton’s management want to make it clear that the company in no way tolerates or condones any type of inappropriate conduct by employees.
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“Norton has a clear anti-corruption policy in place, and we encourage any employee, contractor or supplier who has any knowledge of these allegations to immediately contact the external investigators.”
The West understands Norton is sending out letters to its contractors and suppliers asking them to contact HFW if they have any information regarding the allegations, which stretch over a number of years.
“Anyone who comes forward can remain anonymous and will be afforded the protection of Norton’s whistleblower policy,” the spokeswoman said.
“We anticipate the independent investigators will take around three weeks to interview witnesses, review documents and make evidence-based findings.
“Norton wants to assure all of our stakeholders that the company will take decisive action if any of the allegations are substantiated.”
Contractors and suppliers have been afraid of facing prosecution for being complicit in the alleged racket if they go through the courts to try and claw their money back, according to Dean Logan.
Mr Logan, who works as an adviser to small and medium-sized firms, said he has clients caught up in the allegations.
Dean Logan Yes
Norton is a subsidiary of Zijin Mining Group, China’s largest non-coal mining company, and has two main local gold mining hubs in WA — Paddington and Binduli.
The Paddington mine and mill is Norton’s flagship operation, while Binduli’s existence revolves around processing low-grade ores through the heap leaching technique.
Those two operations are both near Kalgoorlie and combined produce about 200,000 ounces of gold each year.
“If you’re thinking about taking work with Norton, be warned,” Mr Logan said.
“It all starts above board and ‘matey’, but once the contractor has mobilised and settled in, that’s when some of these Norton employees start asking for cash.”
He said the affected businesses are reticent to pull out after sinking substantial time and capital to get workers and equipment on site.
“Yes, contractors make the mistake of getting caught up in it . . . but it starts off at 3 per cent of the invoice value then it’s ratcheted up,” he said.
“When the pressure gets too much and you push back, Norton prosecute you for the most trivial site matter, stand you down and dispute contract or progress payments.
“Then they rinse and repeat with a new contractor.”
Two other local business not connected to Mr Logan have told The West they were caught up in a similar scheme with Norton.
“These Norton guys know contractors are unwilling to go to court, it’s designed this way from the very start,” Mr Logan said.
Norton Gold Fields' Paddinton operation north of Kalgoorlie. Yes
“I’ve helped one client get back $400,000 of the $1.2 million they were owed. Contractors have to take the offer and just walk away.”
In October, the low-profile Norton lodged its 2023 accounts to the Australian Securities and Investments Commission, revealing a bottom-line loss of $44.3m for the year despite a strong gold price.
Norton’s borrowings with related party Gold Mountain International Mining jumped from $460.4m to $581.9m over the year, and interest payments on the debt nearly doubled from $11.4m to $21.6m.
Norton said the extra debt was used to fund its Binduli North heap leach project, which was finished in 2022.
Costs for “maintenance” surging from $24.8m to $66.4m was another stand-out balance sheet line item, as expenses rose across the board.
