Precious metals refiner Heraeus allegedly understated the metal content of materials it processed for customers over a period of more than a decade, The Financial Times reported.
An independent investigation found that the German company had reduced the reported concentration of precious metals in materials belonging to about 450 customers worldwide from 2015 to 2025, according to the FT report.
The practice resulted in customers receiving less cash or refined metal than they were entitled to after processing.
The deductions were generally less than 1% of the metal content and were intended to account for differences between customer test results and the company’s own measurements.
However, an investigation by law firm CMS Hasche Sigle found that the adjustments lacked sufficient transparency in customer contracts and were difficult to justify scientifically.
Heraeus CEO Frank Stietz acknowledged the shortcomings, telling the FT that the deductions were not sufficiently transparent and that some variations were difficult to explain.
The company has set aside €170 million ($271.6 million) to cover potential compensation following the findings.
Wider investigation
The findings add to an ongoing investigation into alleged misconduct at Heraeus, including claims that the company unlawfully retained precious metals left in its processing equipment.
Earlier this year, the FT reported that Heraeus had set aside €460 million amid those allegations, while German prosecutors were investigating 16 current and former employees on suspicion of fraud and embezzlement.
Following earlier settlements, the company still holds €300 million in provisions, including the €170 million allocated to the latest findings.
According to sources cited by the FT, Heraeus employees had previously made manual adjustments to metal test results based on subjective judgements recorded in spreadsheets.
Around 2015, the company introduced a statistical system designed to standardise the deductions, although some adjustments continued to be made manually.
The investigation also raised concerns about the company’s former management, which was accused of allowing questionable practices to continue for years.
Former CEO Jan Rinnert, who left Heraeus shortly before the company reported the matter to authorities in 2025, is among those under criminal investigation, according to the FT.
The London Bullion Market Association (LBMA) also launched a review of Heraeus following earlier reports of suspected fraud and compliance issues.
The review remains ongoing, although Heraeus continues to hold its status as an LBMA Good Delivery refiner.
Write to Jackson Chen at Mining.com.au
Main Image: Heraeus
