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Category: Foreign Affairs / Government and Politics / Mining Industry / Industry / Business, Economics and Finance

AFP investigating Australian companies linked to N Korea mining deals

Friday, 8 Apr 2016 15:28:56 | Mark Willacy And Lisa Main

The UN has banned any dealing with a range of North Korean companies. (AFP/KCNA via KNS)

The Australian Federal Police (AFP) is investigating whether two Australian mining companies breached sanctions involving North Korea.

Key points:

  • DFAT confirmed it made two referrals to federal police
  • The ABC understands one of the companies links back to North Korean firm believed to be under international sanctions
  • The Australian businessmen linked to the deals deny they were sanction busting

The news comes after ABC's 7.30 this week revealed that Brisbane-based geologist Louis Schurmann, 52, and Sydney businessman David Henty Sutton, 72, were directors of two companies that announced mining sub-licences on the Australian Stock Exchange (ASX).

The agreements were struck in December 2012 and March 2013 and involved AAT Corporation and EHG Corporation.

The sub-licences were linked back to North Korea's Natural Resources Development and Investment Corporation (NRDIC), which has been under international sanctions since mid-2012.

The United Nations says the NRDIC is an alias for Green Pine Corporation, which is known for its involvement in North Korea's ballistic missile program and for exporting roughly half of the rogue state's weapons to countries including Iran and Syria.

Before the 7.30 broadcast, the ABC asked the Department of Foreign Affairs and Trade (DFAT) questions about possible investigations into Dr Schurmann and whether any investigations had been referred to the AFP.

In response, DFAT told the ABC it was "unable to comment on specific cases".

"We take credible allegations of non-compliance with sanctions very seriously and, where appropriate, refer them to the Australian Federal Police," the statement said.

But after 7.30 broadcast its story about the links between the two Australian companies and the North Korea mining sub-licences, DFAT confirmed it had made two referrals to the AFP "regarding possible breaches of [North Korea] sanctions by Australian companies".

In response to a query from the ABC, the AFP said it could "confirm it received one referral from DFAT in March 2015 and another referral from DFAT in August 2015 regarding allegations of breaches of sanctions by two Australian mining companies".

Both DFAT and the AFP say that as there is an open investigation it would be inappropriate to comment further.

But the ABC understands that one of the companies being investigated is AAT Corporation, of which Dr Schurmann and Mr Sutton were directors.

In comments to a US corruption investigator JR Mailey, Dr Schurmann confirmed his multiple mining projects in North Korea.

But the South African-born geologist denied he was sanctions-busting.

In an email for the 7.30 story, Mr Sutton denied that any mining agreement signed by either company he was a director of involved the North Korean-sanctioned firm, Green Pine Corporation.

"Although this had a similar-sounding name it was confirmed at the time that this was a separate legal entity and was unrelated to Green Pine Corporation," Mr Sutton wrote.

Whilst UN experts have questioned the wisdom of making agreements with North Korean entities possibly in breach of UN sanctions, the ABC makes no suggestion that either Dr Schurmann or Mr Sutton are involved in any financial wrongdoing.

Both the AAT and EHG agreements never got off the ground.

AustraliaPlus


 

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