BSG Resources to walk away from Guinea's Simandou

JOHANNESBURG, Feb 25 (Reuters) - Israeli billionaire Beny Steinmetz's BSG Resources will walk away from Guinea's massive Simandou iron ore project as part of a settlement ending a long-running dispute with the African country, the company said in a statement on Monday.

The agreement, if implemented, would remove a major obstacle to the development of what is believed to be the world's biggest undeveloped iron ore deposit.

Under the deal, the two parties will drop outstanding actions related to the dispute, and Steinmetz will seek a new group of investors to develop the smaller Zogota iron ore deposit on an accelerated timetable, the statement said.

Guinea had levelled corruption allegations at BSGR and stripped it of its rights to the Simandou blocks and Zogota concession. BSG has denied wrongdoing.

Guinea government officials were not immediately available to comment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

World Markets Stocks Economy


Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More