Glencore has taken a provision of roughly $480 million to cover its entire outstanding net exposure to troubled iron ore trader Radiant World, Bloomberg News reported, citing people familiar with the matter. Radiant World owes Glencore $951 million, while Glencore owes Radiant World $471 million, leaving a net balance of $480 million. The figures were initially reported by the Financial Times, citing a letter from Radiant World to Glencore. They include Glencore's exposure to Sapphire Minmetals, a trading entity Glencore considers part of the same group, although Sapphire's chairman has previously said the companies are separate. Glencore Chief Executive Officer Gary Nagle told investors that the group had halted new transactions, was seeking to exit its remaining contracts and had recorded a provision, but he did not disclose the amount at the time. Although the provision is below Glencore's official materiality threshold, the $480 million write-down is a significant charge for its iron ore desk, led by Peter Hill, head of marketing for steelmaking raw materials. The amount is approximately one-quarter of the average annual earnings before interest and tax generated over the past decade by Glencore's broader metals and minerals trading unit, where iron ore volumes are generally smaller than those of flagship commodities such as copper. Glencore was historically a key counterparty and backer during Radiant World's rapid rise among global iron ore traders and regularly maintained credit exposures worth hundreds of millions of dollars. Late last year, Glencore acquired warrants that would allow it to take a minority equity stake in Radiant World, but the options remain unexercised. The provision comes as tensions between the trading houses intensify. Radiant World has threatened legal action against Glencore over disputed financial obligations, the Financial Times reported on Saturday. In a formal letter, Radiant World alleged that its relationship with Glencore extended beyond standard counterparty trading, claiming Glencore reviewed and approved candidate qualifications for key hires, advised on corporate fundraising and suggested target prices for commercial trades.