Glencore suspends iron ore chief amid Radiant World probe

Glencore has suspended Peter Hill, its head of trading for steelmaking raw materials including iron ore and coking coal, as the commodities giant reviews its dealings with embattled iron ore trader Radiant World, according to Bloomberg and the Financial Times.bloomberg+1

Hill, who led Glencore's relationship with Radiant World, has been stood down from his duties pending the outcome of an internal review the London-listed company announced earlier this week, Bloomberg reported on Thursday, citing a person familiar with the matter who asked not to be identified because the matter is not public.news.bloomberglaw+1

A Multibillion-Dollar Dispute

The suspension comes a day after Radiant World and related companies filed a lawsuit against Glencore in Singapore's High Court, seeking more than $2 billion in damages over allegations of fraud, breach of contract, and conspiracy. The lawsuit, filed on September 15 and seen by Reuters, alleges Glencore deliberately concealed trading arrangements with Radiant World from its audited records while under U.S. Justice Department compliance monitoring following its 2022 guilty pleas to commodity price manipulation and bribery charges.reuters

At the center of the dispute is a 2021 incident in which Glencore demanded Radiant World pay $1.1 billion in mark-to-market exposure on derivatives positions, when the longstanding practice had been to roll over such losses, according to the claim. Glencore then extracted over $800 million in payments between 2021 and 2026 through promises of a long-term partnership before abruptly terminating the relationship this year, the filing alleges.reuters

Glencore called the claims "meritless" and said it would "contest them vigorously," adding that it had "incurred losses and been exposed to risks by Radiant World companies". Radiant World said the matter "is, and has always been, a commercial dispute".reuters

Widening Scrutiny

The fallout extends well beyond the two companies. The U.S. Department of Justice, the Commodity Futures Trading Commission, and Singapore police are all investigating Radiant World amid concerns that the firm provided banks with falsified documents related to iron ore trades. A London court has imposed a $499 million worldwide freezing order on Radiant World and affiliated trader Sapphire Minmetals at the request of a fund managed by Jefferies Financial Group ↗ 1.10%, which alleges the firms falsified iron ore invoices.bloomberg+2

Glencore said on September 11 it had "stopped all business and exited all obligations" with Radiant World and booked a $480 million provision related to its exposure. Radiant World has denied all allegations of wrongdoing, saying it "conducts its business to the highest commercial and legal standards".mining+1