Radiant World’s top China iron ore trader quits amid probes

Leon Jin, Radiant World's head of iron ore in China, left the company on Monday as the embattled trading firm faces escalating pressure over allegations it supplied falsified invoices to banks, according to Bloomberg and Reuters.bloomberg+1

Jin's departure marks the most high-profile exit since Bloomberg first reported in late July that several major commodity traders had moved to cut ties with Radiant World. Sources familiar with the matter said his exit was prompted by difficulties in carrying out daily operations, according to the Straits Times.straitstimes

A Trader Under Siege

According to his LinkedIn profile, Jin had been at Radiant World for nearly four years, joining in October 2022 after more than a decade at rival Trafigura Group. Radiant World has six iron ore traders in China, one of the sources told Reuters.devdiscourse+1

The company, founded in the early 2000s, grew into one of the world's largest iron ore traders, handling more than 80 million metric tons of the steelmaking ingredient last year, according to its website. But its operations have unraveled rapidly in recent weeks. At least five banks have been told that some of the invoices underpinning their exposure to Radiant World are not genuine. Some banks have frozen accounts or suspended credit lines, while major miners and Chinese buyers have withdrawn their business.businesstimes+3

Law Enforcement Probes Widen

The U.S. Justice Department and Singapore police are both investigating the trader. The Singapore Police Force said on August 20 it was looking into Radiant World after receiving reports on the company, though it did not disclose who filed the reports or their substance. Glencore has booked a $480 million provision covering its entire Radiant World exposure, and the firm and its founder have been sued in Singapore for $34 million, according to the Business Times.devdiscourse+2

The company has laid off several employees across its global offices. A spokesperson for Radiant World in Singapore declined to respond to Bloomberg's queries, adding that the company did not comment on internal matters. Radiant World has not been accused of wrongdoing, and investigations do not always lead to charges.businesstimes+2