Guinea revokes mining licenses for Vale joint venture


The government of Guinea has revoked mining licenses for Vale's (VALE) joint venture, ending the company's troubled quest to mine iron ore from the Simandou mountains, which are thought to hold some of the world's last major undeveloped deposits of high-quality iron ore.

Vale's next step is unclear, but the world's top iron ore producer is not necessarily barred from future mining licenses in Guinea.

The book value of Vale's stake in the venture stood at $1.1B at the end of last year.

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Comments (12)
  • gmmpa
    , contributor
    Comments (659) | Send Message
     
    I guess the current crop of politicians in Guinea don't like the fact that the previous crop got all the paid off money before they gained power. Now they want a Mulligan on the contract negotiations.
    26 Apr 2014, 01:10 AM Reply Like
  • MisterJ
    , contributor
    Comments (1169) | Send Message
     
    Probably Pres. Obama's fault and certainly ObamaCare's.
    26 Apr 2014, 01:33 AM Reply Like
  • King Rat
    , contributor
    Comments (1547) | Send Message
     
    Seriously, don't inject unrelated politics into the issue. Americans somehow feel compelled to stick their views everywhere they go. Run along now, Quiet American, get busy with your plastics.
    26 Apr 2014, 12:01 PM Reply Like
  • Qniform
    , contributor
    Comments (4358) | Send Message
     
    KR, you mean you don't appreciate political commentary with no discernible connection to the topic at hand? You are certainly out of touch - look at the multiple likes for that comment. Pretty discouraging, if you ask me...
    26 Apr 2014, 12:23 PM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (8485) | Send Message
     
    King

     

    The commentary was irrelevant. But your bashing Americans based on it, was as well. I'm American, read the comment and thought "how in the world is someone going to tie Obama, Obamacare to this? What an obsessed person." I missed that it was a complete joke at obsessed people.

     

    This site is mostly about American stock markets, published in English spoken by Americans, with operations in in America... and so you're telling Americans to go away? Maybe get used to or adopt for yourself an American value that EVERYONE'S opinion is welcome to be expressed. It's well beyond "plastic," and moves into individual empowerment.
    27 Apr 2014, 06:47 AM Reply Like
  • Qniform
    , contributor
    Comments (4358) | Send Message
     
    LMH, I too missed the irony (which I now see to be likely based on MisterJ's previous comments elsewhere). Nevertheless, it was still an irrelevant injection of a political stance and it thus still revealed an obsession. Further, KR is apparently an expat American entitled to express the opinion that we are parochial to the point of navel-gazing.
    27 Apr 2014, 11:10 AM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (8485) | Send Message
     
    Qniform

     

    Yep, he certainly is welcome to express his view; I made a point of not telling him not to :). I just pointed out the limits of his view of America myself using my expression of my opinion :).

     

    Meanwhile, I know a few people invested in (VALE), and I came here curious to see if it was likely to cause a short term drop in price... or be ignored by the market.
    27 Apr 2014, 11:23 AM Reply Like
  • Qniform
    , contributor
    Comments (4358) | Send Message
     
    The whole situation is one of the more irritating things about online interactions, isn't it? Anyway re: Vale, my take is that this story was largely priced in. In combination with the much larger impact of the good news in their Brazil tax case (which is not a one-time issue), I would have expected a rise in price. I'm moderately long.
    27 Apr 2014, 11:31 AM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (8485) | Send Message
     
    Qniform

     

    Thanks - that's helpful to know about (VALE)! I'll take it into consideration. On comments, guess that's life :)
    27 Apr 2014, 11:34 AM Reply Like
  • Cash McCall
    , contributor
    Comments (157) | Send Message
     
    Who made you head of the parking lot?

     

    Political free speech is allowed in America. I don't know if the guy was just making a tongue in cheek comment. My guess is that the VALE issue over this African stone aged country looked political and despotic and mindless. For some that conjures visions of Obama making petty demands on businesses to become extensions of the welfare office. Something that might have happened to VALE in Guinea. I am glad to see that VALE has more or less rejected this Guinea concept as a departure from their core business and not worth their while.

     

    The old CEO pulled this and it wasn't too smart. Working in Africa is generally a disaster. There is no infrastructure and the cost of production goes sky high and is riddled with danger from war lords and lawlessness. It is hardly conducive to efficient business. The great promise of African resources has continued to fall short of expectations because Africa is Africa and it hasn't changed much in 2.5 million years and doubtless won't change in our lifetimes. Cut it loose and let somebody else deal with the Guinea community organizers.
    28 Apr 2014, 10:31 AM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (8485) | Send Message
     
    Cash Mccall

     

    Since you've posted this comment in a later posting:
    "Sooner or later each generation learns that Africa has remained in the stone age for a very good reason... Africans. "

     

    ...I'm moving on... And since I never objected to free speech, your comment about it at me isn't accurate. Also this is a company's site and they can monitor. It's the go'vt that's obligated to allow free speech.
    28 Apr 2014, 10:41 AM Reply Like
  • dancing duke
    , contributor
    Comments (175) | Send Message
     
    Typical government stupidity.Rob an innocent investor and see how all the rest come running.Plaigerised from the playbook of Fidel Castro.
    26 Apr 2014, 09:03 AM Reply Like
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