Rio Tinto Group is unlikely to develop its $10 billion iron ore project in Guinea in the foreseeable future as the African state struggles to fund transport links, the country’s former mines minister said.
Rio Tinto Group , the world’s third- largest mining company, may lose its Guinean mining license should it fail to hand over documentation for its Simandou iron ore project, Mines and Geology Minister Mahmoud Thiam said.
Rio Tinto Plc sued Vale SA and Israeli billionaire Beny Steinmetz and his BSG Resources Ltd., saying they conspired to steal rights to the world’s biggest untapped iron-ore deposit by bribing officials in Guinea.
Rio Tinto Group may face a call from Guinea’s government to “obey or leave” over a dispute on its ownership of resources at an iron-ore project in the West African nation, according to Mines Minister Mahmoud Thiam .
Guinea does not recognize Rio Tinto Group’s agreement to sell a $1.35 billion stake in the Simandou iron ore deposit to Aluminum Corp. of China Ltd., known as Chalco, Mahmoud Thiam, Guinea;s mines minister, said in an interview in Conakry, the capital, today.
Guinea asked BSG Resources Ltd., billionaire Beny Steinmetz’s mining company, to provide details of gifts and payments to officials as a review into ownership of one of the largest untapped iron-ore deposits nears completion.
The wife of former Guinea President Lansana Conte is helping the U.S. investigate whether a company controlled by billionaire Beny Steinmetz paid bribes to win an iron-ore deposit, a person with knowledge of the probe said.