Iron ore trader Radiant World and related companies are seeking more than US$2 billion ($2.81 billion) from Glencore (LSE:GLEN) in a lawsuit filed in Singapore’s High Court.
Filed on 15 September, Reuters reports the claim alleges fraud, breach of contract, and conspiracy.
Glencore rejects the allegations as meritless and says it will contest them. The miner and commodities trader says it has incurred losses and faced risks through its dealings with Radiant World.
The claim centres on a 2021 demand for a US$1.1 billion payment covering mark-to-market exposure on derivatives positions. Radiant World alleges this departed from an established practice of rolling over losses. It also alleges Glencore obtained more than US$800 million in payments between 2021 and 2026 through promises of a long-term partnership before ending the relationship.
The filing further alleges trading arrangements were concealed from Glencore’s audited records while it was under US Justice Department compliance monitoring.
Glencore disclosed a provision against its Radiant World exposure in August and says it has since ended all business and obligations with the trader.
Separately, Singapore police are investigating Radiant World. The trader denies wrongdoing and describes its dispute with Glencore as commercial.
Glencore produces and markets metals, minerals, and energy commodities worldwide.
Write to France Pinzon at Mining.com.au
Images: Radiant World
