Glencore Cuts Ties With Iron Ore Trader Radiant World

Chief Executive Officer Gary Nagle announced Wednesday that Glencore Plc has stopped entering into new business with iron ore trader Radiant World. Nagle confirmed the company took a financial provision on its exposure to the firm, although he did not disclose the specific amount. Glencore is now working to resolve outstanding items from existing contracts in a legally compliant manner.

This decision follows previous reports that other major commodity traders, including Vitol Group and Cargill Inc., severed ties with Radiant World. These firms reportedly acted on concerns that Radiant World provided banks with falsified documents concerning iron ore trades. Glencore had previously served as a key counterparty for the firm, often maintaining financial exposure in the hundreds of millions of dollars.

Radiant World has disputed these claims. A spokesperson for the company previously described reports of disrupted trading relationships as "categorically untrue" and asserted that its trading relationships remained "healthy and uninterrupted."