Glencore Plc, the Swiss commodities group led by South African executive Gary Nagle, has taken a provision of about $480 million on its exposure to Radiant World, an iron ore trader facing scrutiny over concerns that it provided falsified documents to banks, according to people familiar with the matter.

The provision covers almost all of Glencore’s outstanding net exposure to Radiant World, the people said, asking not to be identified because they were discussing private financial information.

Radiant World owes Glencore about $951 million, while Glencore owes the trader $471 million. The figures include Glencore’s exposure to Sapphire Minmetals, another trading house that Glencore has said it considers part of the same group. Sapphire Minmetals’ chairman has disputed that characterization, saying the companies are separate.

Glencore moves to cut exposure

Glencore said earlier this month that its exposure to Radiant World was “well below” $500 million, the level at which the company considers an item material. Nagle told investors during an earnings call that Glencore was seeking to exit its remaining contracts with Radiant World after halting new business with the trader.

The company had already taken a provision against the exposure but did not disclose the amount at the time.

Glencore had been an important financial and trading partner to Radiant World as the smaller company expanded into one of the world’s largest iron ore traders. Glencore routinely carried exposure to Radiant World worth hundreds of millions of dollars.

The loss is relatively small compared with Glencore’s overall business, but $480 million is still a significant charge. It is roughly a quarter of the company’s average annual earnings before interest and tax from its metals and minerals trading division over the past decade.

Radiant World faces legal pressure

Radiant World sent Glencore a letter threatening legal action over financial obligations between the companies. Radiant World alleged that their relationship went beyond a conventional counterparty arrangement, including claims that Glencore was involved in hiring, fundraising and trade decisions. Glencore rejected the allegations.

“These claims are meritless and Glencore will vigorously contest them,” the company said in a statement. “Glencore has incurred losses and been exposed to risks by Radiant’s actions and will take appropriate action.”

Radiant World has previously denied wrongdoing and said it operates according to commercial and legal standards.

The dispute follows reports that several major commodity traders and banks have reduced or suspended dealings with Radiant World after concerns emerged over the authenticity of documents supporting its financing. At least five banks were told that some invoices linked to their exposure to the trader were not genuine.

US and Singapore authorities are investigating the matter. Radiant World has not been accused of wrongdoing, and an investigation does not necessarily result in criminal charges.

Glencore has since ended its business with Radiant World, according to a person close to the company.

Glencore reports stronger first-half earnings

Glencore, which operates across more than 35 countries and trades about 60 commodities, reported first-half 2026 revenue of $174.43 billion, up 49% from $117.39 billion a year earlier. Adjusted EBITDA rose 86% to $10.11 billion.

Glencore also plans to pursue a secondary listing in Australia as soon as October, giving the company access to investors linked to the country’s A$4.4 trillion ($3.1 trillion) pension market.