Glencore takes provision on Radiant World, says exposure not material

Aug 5 (Reuters) - Glencore has taken a provision related to Radiant World, CEO Gary Nagle said on Wednesday, but added that the Swiss miner and trader's exposure to the iron ore trader was not material.

"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.

Fellow trading houses Vitol Group and Cargill have stopped doing business with Radiant World over concerns that invoices provided to its banks may not have been valid, Bloomberg News reported last week.

Radiant World said the claims were inaccurate and unsubstantiated.

Nagle declined to disclose the size of the provision or say when and why Glencore stopped doing new business with Radiant World.

"We want to make sure, given the heightened scrutiny around this counterpart, that everything needs to be done in a legally compliant manner," the CEO said.

Nagle added that Radiant World and Sapphire Minmetals, another company reported to have attracted scrutiny over invoices, should be viewed as part of the same group.

The two firms have "similar shareholdings and management, and we look at it as a combined group," Nagle said, when asked about Glencore's exposure to Sapphire.

Radiant World declined to comment. Sapphire did not immediately respond to a request for comment.

(Reporting by Tom Daly and Clara Denina. Additional reporting by Solomon Cefai in Singapore. Editing by Louise Heavens and Mark Potter)