Guinea: BSGR wants to reopen arbitration proceedings against its former partner Vale

Sentenced in April 2019 to pay 1.25 billion dollars to its former Brazilian partner Vale for « fraud and breach of warranty » in the case of the exploitation of the Simandou iron deposit, the mining company Benny Steinmetz Group Resources (BSGR) would seek to reopen an arbitration procedure in a U.S. court, the Reuters news agency reported on Monday, May 25. According to the Israeli businessman Benny Steinmetz’s group, Vale was aware of the possibility of corruption or « red flags » when companies teamed up in 2010 to develop the Simandou project, Africa’s largest undeveloped iron ore deposit. A line of accusation that Vale rejects, with the Brazilian group’s management saying it is confident, in a statement issued on Friday 22 May, that « this new [indictment] procedure will continue to be rejected by any court or tribunal, given all of Vale’s due diligence efforts and the extraordinary means that Steinmetz has undertaken to conceal its fraud ».