Israeli mining contractor BSG Resources is hoping to regain the mining rights to a disputed iron ore mine in Guinea, West Africa. The company believes that it has the necessary abilities and expertise to develop the Simandou project in Guinea.
The mining contractor lost its mining licence for the mine in 2014 after it was accused of bribery to get the project.
BSG Resources Advisor Dag Cramer said that the mining contractor is keen on getting back the iron ore mine and clearing its name.
Simandou in Guinea is one of the largest undeveloped iron ore mines in the world. The ore is used in the manufacture of steel. However, since the mine is located in the interior of the country, mining contractors have found it expensive and difficult to develop the site.
The original licence for the project was owned by mining giant Rio Tinto before it lost half of the rights in 2008 to BSG Resources. The Israeli company then forged a partnership with Vale for $2.5 billion, but lost its mining rights after the new government accused BSG Resources of bribery to get access to the Simandou project.
Mining Contractors to clash over Simandou
BSG Resources has also threatened to sue Rio Tinto, claiming that the mining giant had a role to play in BSG losing its mining rights over Simandou. Rio Tinto stated that it would defend itself should BSG Resources go to court. However, Rio Tinto has already sold its rights to Simandou to Chinese mining company Chinalco.
BSG Resources had hoped to restore the train line built in the 1960s and transport the iron ore from Guinea to Buchanan via Liberia. However, this did not happen as the new government cancelled the licence after the mining contractor refused to make royalty payments in advance.