Vale fears it could lose all of Guinea mine investment

|About: Vale S.A. (VALE)|By:, SA News Editor

Vale (VALE +1.4%) warns for the first time it may lose its entire investment in the struggling Simandou iron ore mine in Guinea pending a review by the country's government.

The venture has been hampered by logistical obstacles and later accusations that partner BSG Resources used bribes to acquire the mining rights it now shares with Vale; the Brazilian miner does not say whether its losses could exceed the $500M paid upfront to BSG in 2010.

Vale recently posted its biggest quarterly loss since it went public in 1997.