UPDATE 3-Guinea report says strip BSGR, Vale JV of 2 iron ore permits

miércoles 9 de abril de 2014 14:57 GYT

* Report says BSGR obtained mining rights through corruption

* Recommends BSGR be stripped, excluded from mining rights

* Says JV partner Vale did not take part in graft practices

* BSGR says plan was orchestrated to seize its mine (adds comment from Vale)

By Bate Felix and Silvia Antonioli

DAKAR/LONDON, April 9 (Reuters) - A Guinea government report recommended that BSG Resources (BSGR) and its joint venture partner, Brazilian mining giant Vale, be stripped of two iron ore concessions, saying BSGR obtained the rights by corruption.

The report, released on Wednesday, recommended that Guinea withdraw the mining permit held by VBG, the joint venture between BSGR and Vale, in the giant Simandou iron ore deposit and cancel its Zogota mining concession.

It also called for the government to exclude VBG from any future process toward re-allocating the licenses.

"There is a set of precise and coherent evidence establishing with sufficient certainty the existence of corrupt practices that tarnished the granting of mining rights and mining concession for Simandou and Zogota to BSGR," the report said.   Continuación...