Guinea mining probe recommends stripping Vale, BSG of Simandou licenses

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

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.