KEY POINTS
- Radiant World and Sapphire Minmetals seek $2bn from Glencore.
- Glencore calls the claims without merit.
- A London court has frozen up to $499m in assets.
Radiant World and Hong Kong-based commodity trader Sapphire Minmetals have launched a $2 billion legal claim against Glencore in Singapore, escalating a dispute between the companies over alleged losses linked to iron-ore trading.
Bloomberg News reported the lawsuit on Tuesday, citing Rakesh Sethi, chairperson of Sapphire Minmetals. The claim involves Radiant World and Sapphire Minmetals, which was previously part of Radiant World, working with a Singapore-based iron-ore trader in pursuing damages from Glencore. Reuters said it could not immediately independently verify the Bloomberg report.
Radiant World and Sapphire Minmetals say they have significant claims against Glencore and are seeking about $2 billion in damages.
The dispute comes amid separate legal proceedings involving the two companies. A London court has ordered a freeze on up to $499 million of their assets after a fund managed by Jefferies alleged that they used fake iron-ore invoices as part of a scheme to defraud it.
Radiant World and Sapphire Minmetals have not publicly responded to Reuters’ request for comment on the latest lawsuit.
The Singapore proceedings add another layer to a dispute that has already attracted scrutiny over the companies’ dealings with financial institutions and commodity trading counterparties.
Glencore disputes the claims
Glencore has rejected the claims against it, describing them as without merit.The London-listed mining and commodities group referred Reuters to a statement it issued earlier on Tuesday, in which it said it had found evidence that Radiant World and related companies had sent falsified invoices and contracts to several financial institutions.
Glencore also alleged that fabricated emails were used to make the communications appear to have originated from its personnel.
The company said its dealings with the businesses had resulted in losses and exposed it to additional risks. It said it would take appropriate action to protect its interests.
Sapphire Minmetals has also faced scrutiny over invoices, according to media reports, adding to the legal and financial pressure surrounding the companies.
The dispute follows Glencore’s decision in August to end all business relationships with Radiant World and exit its outstanding obligations with the company.
That decision marked a significant breakdown in commercial ties between the parties and came amid the broader allegations concerning invoices and other documents.
The latest lawsuit could prolong the dispute and potentially expose both sides to further legal proceedings as the claims and counterclaims are examined.
The competing allegations have created a complex legal dispute involving commodity trading, financial institutions and claims over the authenticity of commercial documents.
Radiant World and Sapphire Minmetals maintain that they have substantial claims against Glencore, while Glencore has rejected those claims and said it intends to contest them vigorously.
The $2 billion damages claim reported by Bloomberg has not yet been independently verified by Reuters, and the outcome of the Singapore proceedings remains uncertain.
The dispute also highlights the legal and financial risks that can emerge in international commodity trading, where transactions often involve multiple counterparties, financing arrangements and jurisdictions.
