Guinea mining probe recommends stripping Vale, BSG of Simandou licenses


A Guinean government committee set up to probe mining deals recommends that Vale (VALE) and BSG Resources be stripped of their rights to the Simandou iron ore project, potentially putting one of the world's most sought-after mineral deposits back into play.

The committee says BSG had obtained the rights to Simandou - in which it subsequently sold a 51% share to Vale for $2.5B - through corruption.

BSG has denied any wrongdoing; Vale says any alleged impropriety would have preceded its involvement in the project.

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Comments (9)
  • gmmpa
    , contributor
    Comments (658) | Send Message
     
    Don't blame companies like Vale for Guinea's problem. Companies like Vale are not the root cause of the problems in emerging market countries like Guinea.

     

    This is exactly why the the nations of the African continent have not progressed since the time of the Pharaohs and Romans. They have not been able to get government, the rule of law, liberty, human rights, and civilization in general right since the beginning of time. They have progressed less than the animals of to Serengeti. At least the animals are ruled by Natural Law. All the exists in Africa is corruption, violence, racism, feudalism, and perpetual poverty and population ignorance. They have been unable to break this sad cycle of life for 4000 years. This dispute the fact the influence of colonialism has ceased since the 1950's.

     

    How does a country with such corrupt unstable governments attract capital investment to break this culture of life. That is the question. That is the challenge.

     

    It is not Vale that needs to go. It is the perpetual failed governments of Guinea.
    9 Apr 2014, 09:50 AM Reply Like
  • user 18159032
    , contributor
    Comments (1914) | Send Message
     
    gmmpa, The answer is very easily.
    9 Apr 2014, 09:57 AM Reply Like
  • EdMc
    , contributor
    Comments (73) | Send Message
     
    It is unfortunate that VALE didn't have access to a "carfax" type report on corporate assets being offered for sale.

     

    Note also, that if you buy a car that was stolen - even if you are the "n-th" purchaser since, you end up losing the purchase price. I'm rather sad that VALE apparently didn't excercise due diligence in qualifying that deal. "Haste makes waste."
    9 Apr 2014, 10:26 AM Reply Like
  • user 18159032
    , contributor
    Comments (1914) | Send Message
     
    Vale and the other resource companies pays their money and takes their chances. So do we who invest in extractors. These countries are run by Kleptocrats which is why they are called Kleptocracies.
    9 Apr 2014, 11:05 AM Reply Like
  • gmmpa
    , contributor
    Comments (658) | Send Message
     
    Never too old to learn a new word. That said, I am old enough to know the risks and the rules of the game in emerging markets even if I do not know the word that describes the bad actors. We don't have to go too far from home to find kleptocrats. They are all over the world. Only in America the Kleptocrats enact legislation to legitimize the contacts to make cronyism legal at the expense of the governed.
    9 Apr 2014, 12:40 PM Reply Like
  • coltrek
    , contributor
    Comments (14) | Send Message
     
    Sounds to me like A certain Asian country may be meddling. They are trying to take over all the unstable regimes in Africa.
    9 Apr 2014, 03:40 PM Reply Like
  • magaisti
    , contributor
    Comments (8) | Send Message
     
    Coltrek,

     

    Don't tell that to gmmpa.

     

    Gmmpa,

     

    You sound like a frustrated African overseas. But you have insulted all of Africa in your opening comment, an African is challenged to reply in kind. To this commenter you sound like the black puppy that you have adopted as your symbol - "full of sound and furry, signifying nothing!"
    10 Apr 2014, 09:55 AM Reply Like
  • user 18159032
    , contributor
    Comments (1914) | Send Message
     
    Hey guys, we are about money here. The politics of the situation is just a factor to consider when risking money to those who are risking more money. What Guinea does for a government is their business how it affects our money is the risk we must consider. Vale knew what it was getting into.
    10 Apr 2014, 12:28 PM Reply Like
  • gmmpa
    , contributor
    Comments (658) | Send Message
     
    You tell em user18159032... Vale is a good company. I like their current chart. The technical analysis shows signs it is going higher from here regardless of Guinea. The pissed off Africans should try to get government right and their financial house in order before they go hat in hand for foreign investment capital. Hearing the truth even if it comes from a black puppy is still the truth. Vale is one of the largest mining companies in the world. It has expertise in getting things out of the ground at a profit for its shareholders and the countries that need it done efficiently. If Guinea thinks the 1.6 billion Chinese with picks and shovels can do it better so be it.
    10 Apr 2014, 06:49 PM Reply Like
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