Brazilian miner Vale files $2B lawsuit over Guinea project
Brazilian miner Vale SA said on Wednesday it has filed a lawsuit in the United States to force BSG Resources Ltd (BSGR) to pay it about $1.25 billion, as mandated by an arbitrator in a dispute over a joint venture in Guinea, plus interest and expenses.
Earlier this month, Vale said an arbitration court in London had ordered BSGR to pay $1.246 billion. The suit, filed in the U.S. District Court for the Southern District of New York, seeks payment of more than $2 billion when interest and expenses are taken into account.
The arbitration case stemmed from a dispute between Vale and BSGR, which is controlled by billionaire Beny Steinmetz, over Simandou, which contains billions of tonnes of high-grade iron ore, making it one of the world’s biggest iron ore deposits.
Vale has accused BSGR of fraudulently inducing it to buy a 51 percent stake in a joint venture to develop the mine, a concession later revoked by the Guinean government on charges the rights were obtained through corrupt means.
A government report at the time said Vale was not a participant in the corruption.
(By Gram Slattery; Editing by Paul Simao)