Glencore has suspended senior executive Peter Hill as the Swiss commodities group reviews its past business dealings with iron ore trader Radiant World, escalating scrutiny of a relationship that has now become the subject of a $2 billion legal dispute.

Hill, Glencore’s head of steelmaking raw materials, including iron ore and coking coal, has been stood down pending the outcome of the review, according to a person familiar with the matter. His role gave him direct responsibility for the company’s relationship with Radiant World.

The suspension comes days after Radiant filed a $2 billion legal claim in Singapore against three Glencore entities. The lawsuit alleges that Glencore failed to disclose the “true nature” of certain trading arrangements in its audited records.

Glencore has rejected the allegations, calling the claims meritless and saying it will contest them vigorously.

Glencore launches review of past dealings

Glencore said Tuesday that it had found evidence that Radiant World, Sapphire Minmetals and associated companies sent falsified invoices and contracts, along with fabricated emails purportedly from Glencore employees, to financial institutions.

The company said it had stopped doing business with the companies involved and had exited all obligations. It also said it was reviewing its historic business activities with Radiant World and related entities.

Radiant, based in Singapore, grew from a little-known trader into a major player in the global iron ore market. The company has faced growing scrutiny from lenders and other financial institutions following allegations over the validity of documents used in its financing arrangements. Radiant World has denied wrongdoing.

Mizuho Bank extended about $100 million of credit to Radiant in June, secured by invoices that Glencore later said it did not recognize.

Hill had been a prominent figure in Glencore’s iron ore business and took charge of iron ore marketing during a senior management reshuffle in 2021. His suspension places one of the executives most closely linked to the Radiant relationship at the center of Glencore’s internal review.

Financial impact remains in focus

The dispute has already had a financial cost for Glencore. In August, the company recorded a $480 million provision for its net exposure to Radiant World. The amount reflected $951 million owed to Glencore, partly offset by $471 million owed by Glencore.

Listed on both the London Stock Exchange and the Johannesburg Stock Exchange, Glencore operates in more than 35 countries and trades about 60 commodities. It is one of the world’s largest commodity traders, with a business spanning mining, metals and energy.

Glencore is also preparing for a secondary listing in Australia as soon as October, adding another major corporate move as the company deals with the fallout from its dispute with Radiant World.