BHP Billiton found evidence of possible breaches of anti-corruption laws after the US Securities and Exchange Commission requested information for an investigation.
BHP identified "possible violations of applicable anti-corruption laws involving interactions with government officials".
The company said the probe into the termination of some minerals exploration projects didn't involve
its business in China. US regulators have increased scrutiny of corporate governance and compliance following the 2008 collapse of Lehman Brothers.
Shares closed down 7c at A$42.73 on the ASX yesterday. BHP also trades on the New York Stock Exchange, which is why the SEC has jurisdiction over the company.
The SEC couldn't "confirm or deny the existence or non-existence of any investigation," said John Nester, a Washington-based spokesman. In its quarterly exploration report, in which it revealed the probe, BHP said it has exploration projects in Chile, Zambia, Australia, Gabon, South America, Russia, West Africa and Canada.
The SEC and Department of Justice encourage self-reporting, or voluntary disclosure, and a company's co-operation is an important consideration in determining whether to prosecute, said Christopher Stephens, a Hong Kong lawyer.
"The DOJ may also decide that even apparently isolated transgressions in one country may merit a global investigation of industry practices."
- BLOOMBERG
