Glencore faces $2.55 billion suit as it alleges Radiant World fraud

Glencore accused Radiant World and associated companies of sending falsified invoices to lenders – just as a senior executive at the group of traders said they had filed a US$2 billion (S$2.55 billion) lawsuit against Glencore.

The claims mark the explosive end of a business relationship that for many years was extremely close.

Bloomberg News has reported previously that Glencore traded extensively with Radiant World, helping it secure financing and even acquiring warrants that gave it the option to take a minority stake in the smaller company. 

On Sept 15, Glencore said that it had ended all business with Radiant World and associated companies including Sapphire Minmetals, and “exited all obligations”. 

For the first time, it directly accused them of fraud, saying that it had “confirmed evidence” that Radiant World and associated companies had “sent falsified invoices and contracts as well as fabricated e-mails, which they fraudulently claimed to have received from Glencore personnel, to a number of financial institutions”.

Bloomberg News reported in July that several major commodity traders had moved to cut ties with Radiant World amid concerns it had provided falsified documents to banks.

The company at the time denied wrongdoing and said it conducts its business to the highest commercial and legal standards.

A spokesperson for Radiant World had no immediate comment on the Glencore statement.

Radiant World and Sapphire Minmetals have previously claimed that Glencore’s withdrawal went against its contractual commitments to them and has caused them enormous losses. 

“We have filed in the Singapore court against Glencore for US$2 billion,” Rakesh Sethi, chairman of Sapphire Minmetals, told Bloomberg News by phone on Sept 15.

He said that Radiant World and Sapphire Minmetals were joining forces for the claim, declining to give further details. 

It was not immediately possible to confirm that the lawsuit had been filed on the website of Singapore’s court system.

A spokesperson for Radiant World declined to comment on Sethi’s statement.

In its statement, Glencore said: “These claims are meritless and we will contest them vigorously. We have incurred losses and been exposed to risks by Radiant World companies and will take appropriate action.”

Glencore has taken a US$480 million provision on its exposure, Bloomberg previously reported, one of its largest trading losses in its history as a public company.

“We take these issues seriously and are conducting a review of our historic business activities with Radiant World, Sapphire Minmetals and associated companies,” it said.

Glencore for years was Radiant World’s most important backer, Bloomberg has reported previously.

A letter from Radiant World’s lawyers, previously reported by Bloomberg, cited a November 2024 WhatsApp message from Peter Hill, Glencore’s head of steelmaking raw materials, in which he said that Glencore had “basically bank rolled your entire existence for the last few years”.

However, the relationship soured in 2026, with Glencore beginning to withdraw after banks started to approach it with Radiant World invoices with its name on it, which it could not verify as genuine, Bloomberg reported previously. 

A lawsuit against Radiant World from Incomlend, a Singapore invoice financing platform, alleged that Radiant World borrowed from it using Glencore documents which Glencore later said were not genuine.

Meanwhile, Jefferies Financial Group has accused it of falsifying iron ore invoices as part of a “fraudulent scheme” in a claim that led a London court to impose a US$499 million worldwide freezing order against Radiant World and Sapphire Minmetals. BLOOMBERG