Glencore Takes Provision for Radiant World, Exposure Considered Not Material
Glencore's Response to Radiant World Exposure
Aug 5 (Reuters) - Glencore has taken some provision in its books relating to Radiant World, the Swiss miner and trading house's CEO said on Wednesday, but added that its exposure to the iron ore trader was not material.
Details of Glencore's Provision
"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," Gary Nagle told journalists on a conference call.
Industry Reaction and Trading Suspension
Fellow trading houses Vitol Group and Cargill have stopped trading 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 to Allegations
Radiant World said the claims were inaccurate and unsubstantiated.
Glencore's Position on Provision and Compliance
Nagle declined to put a figure on the provision or to say when and why Glencore had stopped doing new business with Radiant World.
Commitment to Legal Compliance
"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.
(Reporting by Tom Daly and Clara Denina, Editing by Louise Heavens)
