Glencore (LSE:GLEN) has suspended Peter Hill, its head of steelmaking raw materials, pending an internal review of its dealings with Singapore-based iron ore trader Radiant World.
The Financial Times reports the suspension follows an escalating dispute between the companies.
The development follows a claim filed in Singapore’s High Court on 15 September, in which Radiant World and related companies seek more than US$2 billion ($2.81 billion) from the miner and commodities trader.
The lawsuit alleges fraud, breach of contract, and conspiracy. Glencore rejects the allegations as meritless and says it will contest them.
Separately, Glencore says it has evidence that Radiant World and associated entities submitted falsified invoices, contracts, and fabricated emails purporting to come from Glencore personnel to financial institutions, according to Reuters.
Radiant World denies wrongdoing. The competing allegations remain disputed.
The Singapore claim centres on a 2021 demand for US$1.1 billion covering mark-to-market exposure on derivatives positions. Radiant World alleges the demand 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.
Glencore disclosed a provision against its Radiant World exposure in August and says it has ended all business and obligations with the trader. It says the relationship caused losses and exposed it to risks.
Singapore police are also investigating Radiant World, which describes its dispute with Glencore as commercial.
Write to France Pinzon at Mining.com.au
Images: Radiant World
