Brazilian miner Vale has announced that the Republic of Guinea has revoked the mining licenses for the Simandou and Zogota iron ore projects due to a technical committee report indicating that the mining licenses were obtained by Vale's partner BSG Resources Limited (BSGR) through corrupt practices.
The committee in question did not find any involvement by Vale in the fraudulent conduct relating to the acquisition of the mining licenses, which occurred more than one year before Vale made any investment in the joint venture between Vale and BSGR, and recommended that the Guinean government adopt measures to exclude BSGR and BSGR's affiliates from the reallocation of the mining titles, but did not suggest that Vale be prohibited from participating in any such process.
In April 2010, Vale acquired from BSG Resources Ltd (BSGR) a 51 percent interest in BSG Resources (Guinea) Ltd, which indirectly holds iron ore concession rights in Zogota.
