Glencore has suspended Peter Hill, its head of steelmaking raw materials, amid an ongoing investigation into the commodities group’s dealings with iron ore trader Radiant World. The suspension comes as part of an internal review into Glencore’s business relationships with Radiant and affiliated companies, according to a person familiar with the matter.

Radiant World, a Singapore-based iron ore trader that rapidly expanded to become one of the largest in the sector, filed a $2 billion lawsuit against three Glencore entities in Singapore earlier this month. The lawsuit alleges that Glencore concealed the “true nature” of their trading arrangements from its audited financial statements. Glencore has denied these allegations, characterizing Radiant’s claims as without merit and stating its intention to vigorously contest the suit.

The review and suspension of Hill follow inquiries into his involvement in the relationship with Radiant. Hill, who assumed the role of head of iron ore marketing at Glencore in 2021, has been a key figure in the company’s iron ore trading operations. The internal review reportedly began prior to the public emergence of the lawsuit.

Radiant has become the focal point of controversy amid allegations from lenders and other business partners regarding the use of falsified or invalid documents in its transactions. These concerns have prompted several financial institutions and companies to distance themselves from the trader. Radiant has denied all accusations of wrongdoing.

Glencore's response to Radiant’s suit underscores the company’s stance that the claims lack foundation. The suspension of Hill appears to be a measure taken while the internal investigation into the complex commercial ties between Glencore and Radiant continues. The outcome of the review and the legal proceedings are expected to have significant repercussions within the iron ore trading sector.