Swiss commodities giant, Glencore is facing a threat of lawsuit exceeding $1.4 billion from Singapore-based iron ore trader Radiant World, even as it negotiates a separate $9 billion deal to sell a 40% stake in two of the Democratic Republic of Congo's largest copper and cobalt operations.

The dispute stems from Glencore's closure of derivatives positions and demand for repayment of approximately $1.2 billion in exposure linked to Radiant World and its affiliate Sapphire Minmetals.

Radiant World alleges Glencore was more deeply involved in its operations than a conventional trading counterparty and that its conduct contributed to the losses now being claimed.

The Singapore company says Glencore once held a warrant capable of giving it an interest approaching 5% in Radiant, and that the companies had discussed a possible outside investment. According to documents reviewed by the Financial Times, Radiant World has accused the commodities group of causing it substantial losses after their trading relationship collapsed.

Glencore has rejected the allegations as meritless. The company maintains that it suffered losses from its dealings with Radiant and has already made provisions for its remaining exposure. Glencore has taken a provision of roughly $480 million to cover its outstanding net exposure to Radiant World.

"The provision effectively covers Glencore's entire outstanding net exposure to Radiant World," Bloomberg News reported, citing people familiar with the matter. Radiant World owes Glencore a total of $951 million, while Glencore owes Radiant $471 million, leaving a net balance of $480 million.

Speaking to investors on an earnings call, Glencore Chief Executive Officer Gary Nagle said the group had halted new transactions and was seeking to exit remaining contracts. "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 earlier this month.

Radiant World sent Glencore a lawyer's letter on Thursday seeking to recover more than $800 million and claiming damages for alleged destruction of value, according to reports. The company said the dispute stems from a long-running trading and financing relationship that broke down in 2021.

The legal threat comes as Glencore works towards a separate transaction that could give a US-backed consortium a 40% interest in the company's stakes in Kamoto Copper Company and Mutanda Mining in the DRC. Glencore and the Orion Critical Mineral Consortium announced a non-binding agreement in February that placed an enterprise value of approximately $9 billion, including debt, on the Congolese operations.

The $9 billion figure is not the amount Orion has agreed to pay—it is the combined valuation being used for negotiations over the proposed 40% interest. The mines produced a combined 247,800 tonnes of copper and 33,500 tonnes of cobalt in 2025. There is no evidence that Radiant's threatened claim has delayed or disrupted the Congo negotiations.

The dispute has emerged during a broader crisis at Radiant World, which describes itself as one of the world's largest independent iron-ore traders, reporting approximately $9.6 billion in revenue for the financial year ending September 2025.

The US Department of Justice, the Commodity Futures Trading Commission and Singapore police are investigating allegations involving trade documents used in financing transactions. Radiant has denied wrongdoing and said allegations that its documents were invalid are false.

Glencore said the claims were without merit and that it would defend itself, adding that Radiant World's actions had caused it loss and risk.