Glencore says it found proof that Radiant World and associated companies provided banks with fake paperwork and emails that they said originated from Glencore personnel. The company called the counterclaims against it baseless, saying: "These claims are meritless and we will contest them vigorously. We have incurred losses and been exposed to risks by Radiant World companies and will take appropriate action." Glencore added that it has ended all dealings with Radiant World and linked entities, including Sapphire Minmetals, and "exited all obligations."
According to earlier Bloomberg reporting, Glencore booked a $480 million provision related to its exposure, which the outlet described as among the biggest trading losses since it went public. Glencore also said: "We take these issues seriously and are conducting a review of our historic business activities with Radiant World, Sapphire Minmetals and associated companies."
For years, Glencore backed Radiant World - trading extensively with it, assisting with financing, and obtaining warrants that allowed it to acquire a minority interest. In a letter already reported by Bloomberg, Radiant World's lawyers referenced a WhatsApp note from November 2024 by Peter Hill, who leads Glencore's steelmaking raw materials business, saying Glencore had "basically bank rolled your entire existence for the last few years."
That relationship frayed this year after banks began approaching Glencore with Radiant World invoices bearing Glencore's name that the trader could not authenticate, according to earlier Bloomberg reporting. By July, several large commodity houses were distancing themselves from Radiant World over concerns about falsified documents. At that time, Radiant World denied wrongdoing, saying it operates "to the highest commercial and legal standards." A Radiant World spokesperson had no immediate comment on Glencore's latest statement.
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Jefferies Financial Group Inc. filed a lawsuit alleging Radiant World issued bogus invoices tied to iron ore, describing the conduct as a "fraudulent scheme." That proceeding led a London court to grant a $499 million worldwide freezing order targeting Radiant World and Sapphire Minmetals. Separately, Singapore invoice financing platform Incomlend Pte. sued Radiant World, alleging it borrowed using documents with Glencore's name that Glencore later said were not genuine.
Radiant World and Sapphire Minmetals have said in the past that Glencore's retreat breached its contracts with them and caused massive losses.
On Tuesday, Sapphire Minmetals chairman Rakesh Sethi said by phone, "We have filed in the Singapore court against Glencore for $2 billion," and noted the claim is being pursued jointly by Radiant World and Sapphire Minmetals, while withholding additional specifics. A check of Singapore's court website did not yield immediate confirmation of a filing. A Radiant World spokesperson declined to comment on Sethi's statement.
For everyday investors, here is the takeaway: a top global trader has severed ties with a long-time partner, is reviewing years of business, and has, per prior Bloomberg reporting, taken a $480 million hit tied to the fallout, while separate claims have already triggered a $499 million asset freeze. Disputes like this can ripple through lenders, suppliers and customers that touch these firms, which is worth watching if your money is exposed to that ecosystem.
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