German precious metals refiner Heraeus hit with fraud probe

German prosecutors are investigating suspected embezzlement and fraud at precious metals refiner and industrial conglomerate Heraeus Holding GmbH, for which the company set aside nearly €458 million ($537 million) to cover potential risks.

The Frankfurt prosecutors’ office said it’s conducting an investigation into 16 suspects, after suspicions emerged that unlawful removals of customer-delivered material may have taken place at the company’s precious metals recycling business.

The possible criminal irregularities were suspected to have occurred between 2015 and 2025, Frankfurt prosecutors said in a statement. The investigation was initiated after a disclosure from the company and has been ongoing since last June.

Heraeus is one of Germany’s largest private companies and one of the world’s largest precious metals refiners, with operations across the globe, including a trading hub in New York, a refinery in Switzerland and a recycling plant for platinum, palladium and rhodium in Hanau, Germany. The investigation is a blow for the conglomerate’s precious metals business in an industry where trust and long-standing business relationships are the norm.

Irregularities were identified at the Hanau platinum-group metal recycling site, the company said in its 2024 annual report. An internal investigation by an external law firm triggered by Heraeus found discrepancies in its precious metal inventories, and the company said it assumed a significant proportion, if not all, of the excess inventories in fact belonged to customers.

Heraeus booked €457.7 million in provisions for risks arising from the investigation as of end-2024, and said “extensive changes at personnel and organization level” had already been implemented. It also said it had reached out the customers who had been affected.

South African miner Northam Platinum said in August that it had engaged in an “amicable” engagement with Heraeus to redetermine historical refining outcomes with the company, covering roughly a decade. Heraeus made a one-off payment of $66 million to the company.

The family-owned Heraeus Group operates across multiple business lines, with roughly 15,000 employees in more than 40 countries. The firm reported around €29.4 billion in total revenue in 2024.

“Throughout this process, we have acted transparently, proactively notifying the relevant authorities. We are fully cooperating with them, and welcome further clarification of the matter,” a Heraeus spokesperson said. “Personnel consequences have been enacted, and further measures have been initiated to prevent recurrence.”

Northam did not immediately respond to a request for comment. News of the investigation was first reported by the Financial Times.

(By Jack Ryan and Karin Matussek)