Glencore takes provision on Radiant World, says exposure not material
Glencore's Response and Industry Reactions
Provision Related to Radiant World
Aug 5 (Reuters) - Glencore has taken a provision related to Radiant World, CEO Gary Nagle said on Wednesday, but added that the Swiss miner and trader's exposure to the iron ore trader was not material.
Assessment of Contracts and Legal Compliance
"We've got some pre-existing contracts with some outstanding items. We're assessing how to address them in a legally compliant manner, but we've stopped doing any new business with Radiant," Nagle told journalists on a conference call.
Industry Moves and Allegations
Actions by Other Trading Houses
Fellow trading houses Vitol Group and Cargill have stopped doing business with Radiant World over concerns that invoices provided to its banks may not have been valid, Bloomberg News reported last week.
Radiant World's Response
Radiant World said the claims were inaccurate and unsubstantiated.
Details on Glencore's Provision and Related Entities
Provision Size and Business Cessation
Nagle declined to disclose the size of the provision or say when and why Glencore stopped doing new business with Radiant World.
"We want to make sure, given the heightened scrutiny around this counterpart, that everything needs to be done in a legally compliant manner," the CEO said.
Relationship Between Radiant World and Sapphire Minmetals
Nagle added that Radiant World and Sapphire Minmetals, another company reported to have attracted scrutiny over invoices, should be viewed as part of the same group.
Combined Group Analysis
The two firms have "similar shareholdings and management, and we look at it as a combined group," Nagle said, when asked about Glencore's exposure to Sapphire.
Radiant World declined to comment. Sapphire did not immediately respond to a request for comment.
(Reporting by Tom Daly and Clara Denina. Additional reporting by Solomon Cefai in Singapore. Editing by Louise Heavens and Mark Potter)
