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Reuters reported today that Rio Tinto (NYSE:RIO) is suing Vale (NYSE:VALE), BSG Resources, and Isreal’s Beny Steinmetz over rights to iron ore deposits in Simandou, Guinea.
Reuters reported today that Rio Tinto (NYSE:RIO) is suing Vale (NYSE:VALE), BSG Resources, and Isreal’s Beny Steinmetz over rights to iron ore deposits in Simandou, Guinea. According to Reuters, Rio Tinto spent hundreds of millions of dollars developing a project in Simandou before its rights to part of the deposit were revoked in 2008. The government of Guinea transferred the deposit to BSGR shortly afterwards.
As quoted in the publication:
Rio Tinto alleged in its complaint that the defendants devised a fraudulent scheme to steal its rights over the northern half of Simandou. Steinmetz and BSGR dismissed the charge and Vale declined to comment.