(Sept 16): Glencore has accused Radiant World and associated companies of sending falsified invoices to lenders, cutting ties just as the iron ore trader filed a suit in Singapore against the Swiss-based commodities group, seeking S$2.5 billion (US$2 billion or RM8.1 billion) in damages.
The claims mark an explosive end to a business relationship that for many years was extremely close. Bloomberg News has reported previously that Glencore traded extensively with Radiant World, helping it secure financing and even acquiring warrants that gave it the option to take a minority stake in the smaller company.
On Tuesday, Glencore said that it had ended all business with Radiant World and associated companies including Sapphire Minmetals, and “exited all obligations.”
For the first time, the miner and trader directly accused them of fraud, saying that it had “confirmed evidence” that Radiant World and associated companies had “sent falsified invoices and contracts as well as fabricated emails, which they fraudulently claimed to have received from Glencore personnel, to a number of financial institutions.”
The Singapore case, filed on Sept 15, was brought by 11 Radiant World-linked entities, comprising the two companies’ trading operations as well as other affiliated companies in Singapore, Hong Kong, the United Arab Emirates and Switzerland, and targets three Glencore units, according to court documents. The first case conference is scheduled for Oct 21.
Rakesh Sethi, chairman of Sapphire Minmetals, had earlier confirmed the suit. He said by telephone on Tuesday that Radiant World and Sapphire Minmetals were joining forces for the claim, declining to give further details.
A spokesperson for Radiant World declined to comment on Sethi’s statement. A Singapore spokesperson for the company didn’t immediately reply to messages seeking comments on the court document.
Bloomberg News reported in July that several major commodity traders had moved to cut ties with Radiant World amid concerns it had provided falsified documents to banks. The company at the time denied wrongdoing and said it conducts its business to the highest commercial and legal standards.
Radiant World and Sapphire Minmetals have previously claimed that Glencore’s withdrawal went against its contractual commitments to them and has caused them enormous losses.
In its statement, Glencore said: “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 has taken a US$480 million provision on its exposure, Bloomberg previously reported, one of its largest trading losses in its history as a public company.
“We take these issues seriously and are conducting a review of our historic business activities with Radiant World, Sapphire Minmetals and associated companies,” it said.
Glencore for years was Radiant World’s most important backer, Bloomberg has reported previously. A letter from Radiant World’s lawyers, previously reported by Bloomberg, cited a November 2024 WhatsApp message from Peter Hill, Glencore’s head of steelmaking raw materials, in which he said that Glencore had “basically bankrolled your entire existence for the last few years.”
However, the relationship soured this year, with Glencore beginning to withdraw after banks started to approach it with Radiant World invoices with its name on it, which it could not verify as genuine, Bloomberg reported earlier.
A lawsuit against Radiant World from Incomlend Pte, a Singapore invoice financing platform, alleged that Radiant World borrowed from it using Glencore documents which Glencore later said were not genuine. Meanwhile, Jefferies Financial Group Inc has accused it of falsifying iron ore invoices as part of a “fraudulent scheme” in a claim that led a London court to impose a US$499 million worldwide freezing order against Radiant World and Sapphire Minmetals.
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