Brazil’s Vale (NYSE: VALE), the world’s no. 1 iron ore miner, has launched a legal action in New York to determine whether funds paid to BSG Resources within the framework of their former Simandou partnership in Guinea were used for property investments in the United States.
The Rio de Janeiro-based mining giant alleges that BSGR, diamond tycoon Beny Steinmetz’s mining arm, fraudulently funneled $500 million into Manhattan real estate’s magnates Aby Rosen and René Benko, Africa Intelligence reported.
The case is the latest in a series of efforts Vale has made to have BSGR pay a $1.2 billion arbitration award. The amount was granted to the Brazilian miner on the grounds of “fraud and breaches of warranty” when included in the Simandou iron ore joint venture.
At two billion tonnes of iron ore with some of the highest grades in the industry, Simandou is one of the world’s biggest and richest reserves of the steelmaking material, but it has a controversial past.
For more than a decade, it was the centre of a bitter dispute that involved Rio Tinto, Vale and BSGR.
For the rest of this article: https://www.mining.com/vale-after-nyc-real-state-moguls-for-simandou-compensation/