The Swiss commodities trader is taking legal action. Keystone / Martial Trezzini
Swiss commodities trading company Trafigura says it has been defrauded to the tune of $577 billion (CHF530 billion) by fake nickel shipments.
This content was published on February 9, 2023 – 19:04 February 9, 2023 – 19:04 swissinfo.ch/mga
The firm has launched legal action against a Dubai-based metals trader and the group of companies he runs out of the Middle East emirate.
“The fraud concerns containerised nickel in transit during 2022 and involved misrepresentation and presentation of a variety of false documentation,” Trafigura said in a statement on Thursday.
Random checks of these containers found they contained no nickel at all. Most of the shipment is still in transit awaiting inspection.
Nickel is an important industrial metal with a variety of uses from batteries to coins, medical equipment and turbine blades.
Trafigura has set aside the $577 billion provision in expectation of the worst-case scenario.
The company, which made a record $7 billion net profit in 2022, says the fraud is limited to one business line and would not affect group operations.
Trafigura added that it still expects profits for the first six months of 2023 to exceed those of the same period last year.
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