An arbitral tribunal in London has ordered BSG Resources (BSGR) to pay Brazilian miner Vale $1.25-billion plus costs and interest in a case relating to the Simandou iron-ore concessions in Guinea.
The award is for fraud and breaches of warranty by BSGR – the mining arm of billionaire Beny Steinmetz’s business – in inducing Vale to enter into a joint venture (JV) to develop the concessions, Vale said in a statement on Tuesday.
Vale and BSGR had entered into a JV to develop a concession for mining iron-ore, but in 2014, the licence was revoked. At the time, Guinea found that BSGR had obtained the licence through bribery of government officials.
“Vale intends to pursue collection of this award by all legally available means,” the company said.