Singapore-based iron ore trader Radiant World and its former subsidiary Sapphire Minmetals have filed a lawsuit against mining giant Glencore, seeking US$2 billion (S$2.5 billion) in damages, according to a Bloomberg News report.
The claim was filed in Singapore, with Sapphire Minmetals joining Radiant World in the legal action. Sapphire Minmetals was previously part of the Radiant World group.
The lawsuit comes as Radiant World faces separate legal proceedings and scrutiny over allegations involving disputed iron ore invoices and financing arrangements.
Radiant World and Sapphire Minmetals are currently subject to a London court order freezing up to US$499 million in assets. A fund managed by Jefferies has alleged that the companies used falsified iron ore invoices as part of a scheme to obtain financing.
Glencore has separately said it uncovered evidence that Radiant World and associated companies sent falsified invoices, contracts and fabricated emails that appeared to come from Glencore employees to financial institutions.
Glencore said it had suffered losses and been exposed to risks through its dealings with the companies and that it would pursue appropriate legal action.
Radiant World and Sapphire Minmetals, meanwhile, maintain that they have significant claims against Glencore. The companies’ claims have been rejected by Glencore, which described them as without merit and said it would contest them vigorously.
Glencore stopped doing business with Radiant World in August and said it had exited its outstanding obligations with the trader.
The dispute adds another layer to the growing legal and financial troubles surrounding Radiant World, which has faced investigations and actions involving lenders and other trading partners.
Reuters said it was not immediately able to independently verify the Bloomberg report, while Radiant World and Sapphire Minmetals had not immediately responded to requests for comment.
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