(Adds details, quotes, context)
LONDON, March 23 (Reuters) - The London Metal Exchange
(LME) said on Thursday that no further "irregularities" have
been found in LME-warranted nickel stocks following a 100%
inspection of all bagged nickel warrants in LME-licensed
warehouses.
The 146-year-old exchange is on track to resume the Asian
hours nickel trading on March 27 "given its confidence in the
situation following the inspection," it added.
Last week, the LME cancelled nine warrants - documents
conferring ownership of metal stored in LME-registered
warehouses - or 54 tonnes of bagged nickel briquette, without
disclosing what was in the bags, and asked its warehouse
operators to inspect remaining warranted nickel.
"The LME is pleased to confirm that no further
irregularities have been found in LME-warranted nickel in any of
its licensed warehouses globally, and all warehouse operators
have confirmed to the LME that they are satisfied with the
integrity of the nickel underlying all warrants," it said in a
statement.
The LME's own warehouse inspectors have also done on-site
sample-testing and identified no concerns, it added.
Sources with knowledge of the matter told Reuters earlier
this week that nickel delivered by LME-approved warehouse firm
Access World to commodity traders Trafigura and Stratton Metals
contained stones instead of nickel.
"The LME has been working with the affected warehouse
company and other relevant parties to fully establish the
circumstances of the incident. Shipment details give the LME
additional confidence that this was an isolated incident,
affecting an identifiable parcel of metal," the exchange said.
The LME pointed out that though it still continues to gather
information, it has power to undertake an investigation and take
enforcement action in respect of suspected misconduct and will
exercise such powers as it considers appropriate.
The exchange also plans to discuss with its committees of
industry specialists whether any further steps could be
considered after the incident.
(Reporting by Polina Devitt in London and Bharat Govind Gautam
in Bengaluru; Editing by Marguerita Choy)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.