The English High Court allowed Vale SA to enforce a US$2 billion arbitration award it won against BSG Resources Ltd., stemming from fraudulent misrepresentations the latter made in the miner's purchase of a majority stake in the Simandou iron ore project in Guinea.
The Brazilian miner acquired a 51% stake in the northern half of Simandou from BSG, a firm owned by Israeli billionaire Beny Steinmetz, for US$2.5 billion. Later, the Guinea government revoked BSG Resources' project rights due to corruption surrounding the deal to acquire the rights.
In February, BSG Resources relinquished the project, with the firm owned by Israeli billionaire Beny Steinmetz and Guinea agreeing to withdraw outstanding actions related to Simandou. The West African nation later launched an international tender for blocks one and two of the deposit previously held by BSG Resources.
Vale will continue to try to collect the award as it pursues legal action against BSG Resources in New York and England.
A bankruptcy proceeding filed by BSG Resources in the U.S. in June may hinder Vale from collecting the arbitration award.
