By Alex MacDonald
LONDON--BSG Resources, the mining arm of Israeli tycoon Beny
Steinmetz's family conglomerate, is seeking a judicial review of
the U.K. government's decision to help Guinea with an investigation
that stripped the mining company of a coveted multi-billion dollar
iron ore project this year.
Guernsey-based BSGR on Friday said it filed its request with the
U.K. High Court in London last month, alleging that the U.K.'s
Serious Fraud Office and Home Secretary Theresa May--the minister
in charge of the Home Office--agreed to help Guinea without
investigating its political motivations.
It claims that the two U.K. bodies offered unlawful assistance
to the Guinean government, which revoked BSGR's rights to a
142-square-mile, high quality, iron-ore concession in the country's
Simandou mountains in April. BSGR claims the Guinean government's
action was governed by its desire to reward the financial backers
of President Alpha Conde's 2010 election campaign.
Guinea says BSG Resources obtained the mining rights by improper
means. Mr. Steinmetz has previously called the Guinean probe's
findings a smear campaign against him, while BSGR is seeking
compensation for the loss of its rights through international
arbitration.
Spokesmen for both the SFO and Home Office said their respective
departments could neither confirm nor deny their interest in the
case, while a Guinean government spokesman said, "Guinea has every
confidence in the courts to deal with these matters." The U.K.'s
Home Office wasn't immediately available to comment.
The U.S., France, and Switzerland are also carrying out their
own criminal probes into BSGR's activities at the request of the
Guinean government.
BSGR's former Simandou partner, Vale SA (VALE), is also
considering whether to settle a multi-billion dollar lawsuit
concerning its investment in the project. Rio Tinto PLC (RIO),
which previously owned the entire Simandou concession, is suing
Brazil's Vale SA for helping Mr. Steinmetz "misappropriate" Rio's
half of the Simandou concession. Vale said last week it would
consider settling the matter out-of-court without admitting
wrong-doing.
Write to Alex MacDonald at alex.macdonald@wsj.com
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