The company, which could lose the arbitration as a result, will have to pay the amount to former partner Vale.
Guinea Mining News
Move comes barely seven months after Rio Tinto agreed to sell it its stake in Simandou for up to $1.3 billion.
Deal creates one of the largest diamond mines in West Africa.
He joins a growing list of chairmen who are leaving some of the world's' top mining companies, including BHP Billiton and Anglo American.
Sam Walsh's bonuses, potentially worth millions, had been delayed for at least two years as investigations continue into dubious payments related to Simandou iron ore project in Africa.
The company originally intended to combine its Tongo project with Tonguma, but it has now decided to become the mine's operator.
The amicable divorce ends a six-year-old exploration joint venture originally set to find copper deposits in China.
The Israeli billionaire, under house arrest since Dec. 19, has been at the centre of an international investigation into alleged bribery to win mining rights in Guinea.
A Chinese court has sent a strong message to corporate executives who have been seeing playing fast and loose within the rules of boon-times capitalism in China.
The billionaire and other Israeli businessmen are suspected of paying tens of millions of dollars to senior state officials to secure a licence for Simandou, local police said.
BSGR will sue Rio Tinto in the English High Court to recover losses allegedly caused by Rio's actions, which run to several billions of dollars.
Russian-Canadian Vera Kirikova will become human resources group executive while Simone Niven will assume the corporate relations group executive post.
Energy and Minerals chief executive Alan Davies said he would take the mining giant to court over his dismissal, adding there were “no grounds” for his termination.
Company is said to have found out about the emails referring to a questionable $10.5m payment to a consultant over the Guinea project more than a year ago, not 'just' in August, as it claimed.
Speculation is running and some of what is being said strikes at the heart of the culture and values of the company, chief executive officer Jean-Sébastien Jacques said in an internal memo.
Alan Davies suspended after miner found payments made to consultant in 2011, when he was in charge of the iron ore project.
"It would of obvious strategic benefit for China to control a major iron ore deposit and add new supply to discipline the market."
Rio Tinto announces deal to exit Guinea and giant Simandou iron ore project.
World Bank pulls out of $20 billion Simandou iron ore project in Guinea, West Africa.
The company said its proposed Tongo-Tonguma mine economic evaluation demonstrates robust financial returns for a modest capital requirement.
The diamond producer plans to combine its Tongo mine with Octea Mining’s adjacent Tonguma operation.
$20 billion West African iron ore mega-project had the potential to lower long-term iron ore price by $5 per tonne according to new report.
The price increase comes as iron ore major Rio Tinto decided to put its Simandou project in Guinea on ice due to the iron ore glut that is keeping a lid on prices.
World's number three producer owns the 300,000 ounce per year Siguiri mine in the west African country.
The West Africa-focused firm said it was verbally informed of the approval by the country's Minerals Advisory Board.