Regions

Steinmetz Says Envy on Vale Deal Started Legal Woes

June 27
10:38 PM 2013

In an interview with an Israeli newspaper, billionaire Beny Steinmetz said tht he roots his current issues from the partnership deal he forged three years ago with Brazilian miner Vale SA. He is currently in a legal dispute with Guinea as to mining deals in the country.

The media shy tycoon had kept his silemce throughout the extended battle that his BSG Resources has undergone against the West African country. The dispute stems from the right of BSGR to mine half of Simandou, one fo the biggest untapped iron ore mines in the world.

The interview with Yedioth Ahronoth which will be published on Friday was his first since the dispute in Guinea arose. He identified the lucrative deal signed with Vale that opened the floodgates of trouble for the company.

Steinmetz told the paper, "The problem began, apparently, from envy from the Vale sale. People began to say that BSGR brought an asset for US$100 million or US$200 million and sold it for US$5 billion." He was referring to a US$165 million BSGR exploration project entered into with Guinea which was formed as the basis of the US$2.5 partnership deal with Vale.

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