Glencore Takes $480 Million Provision Over Radiant World Exposure

Glencore took a provision of approximately $480 million to cover its net exposure to Radiant World, an iron ore trader accused of providing falsified documents to lenders. The provision accounts for the total net balance between the two firms, as Radiant World owes Glencore $951 million while Glencore owes Radiant World $471 million.

Chief Executive Officer Gary Nagle confirmed the company has halted new transactions and is seeking to exit remaining contracts. The write-down includes exposure to Sapphire Minmetals Corporation Limited, which Glencore treats as part of the Radiant World group despite denials from Sapphire's chairman. The move represents a significant financial hit to Glencore's iron ore desk.

Radiant World has threatened legal action against Glencore. The trader alleges that Glencore's relationship with the firm extended beyond standard trading to include influence over corporate hiring, fundraising, and trade pricing.