Guinea revokes mining licenses for Vale joint venture

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

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.