BSG seeks to stop Guinea from stripping it of Simandou iron ore deposit

|By:, SA News Editor

BSG Resources, the mining arm of Israeli tycoon Beny Steinmetz, says it is initiating legal action against Guinea to stop the country from stripping it of the prized Simandou iron ore deposit.

Last week, Rio Tinto (RIO), the concession's former owner, filed a lawsuit against BSG, Steinmetz and BSG's former Guinean joint venture partner Vale (VALE), alleging they colluded to rob it of half its prior rights to Simandou.

BSG is seeking to warn off any rivals - including Rio and Vale - from taking control of its share of the deposit, valued at ~$5B.