Guinea ap­proves pro­posal to strip BSGR, Vale of min­ing per­mits

Daily Trust - - BUSINESS -

Guinea’s govern­ment has ap­proved a re­port rec­om­mend­ing that BSG Re­sources (BSGR) and its joint ven­ture part­ner, Brazil­ian min­ing gi­ant Vale, be stripped of two iron ore con­ces­sions, a Guinean govern­ment source said yes­ter­day.

The rec­om­men­da­tions were made in a re­port by a com­mit­tee charged with re­view­ing the West African na­tion’s min­ing deals re­leased last week, which ac­cused BSGR of ob­tain­ing the rights by cor­rup­tion. BSGR, the min­ing branch of Is­raeli bil­lion­aire Beny Stein­metz’s con­glom­er­ate, has de­nied the al­le­ga­tions and said it would seek in­ter­na­tional ar­bi­tra­tion.

“The cab­i­net has ap­proved the tech­ni­cal com­mit­tee’s rec­om­men­da­tions,” the source, who asked not to be named, told Reuters af­ter a cab­i­net meet­ing yes­ter­day.

The com­mit­tee’s re­port rec­om­mended that Guinea with­draw the min­ing per­mit held by VBG, the joint ven­ture be­tween BSGR and Vale, in the gi­ant Si­man­dou iron ore de­posit and can­cel its Zo­gota min­ing con­ces­sion. It also called for the govern­ment to ex­clude VBG from any fu­ture process to re-al­lo­cate the li­cences.

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