Guinea: BSGR strikes back
Very simple, very short, very predictable. After it all kicked off in Guinea, suit and counter-suit following the recent stripping from BSGR of the rights to the Simandou iron ore asset, the conglomerate strikes, as it might very much have been expected to do, back.
BSG Resources (BSGR)... said on Wednesday it has initiated an arbitration against the government of Guinea over its decision to revoke BSGR's miningrights in the country.
The Guinean government cancelled mining rights held by VBG, a joint venture between BSGR and miner Vale, over two iron ore deposits last month, after a government panel charged with reviewing the West African nation's mining deals said in a report it had found BSGR obtained the rights through "corruption" in 2008.
BSGR has repeatedly denied any wrongdoing.
"BSGR is seeking the restitution of its mining titles and agreements as well as damages arising out of the revocation of these interests," the company said in a statement.
No doubt there's more to come. Stay tuned.