UPDATE 3-Guinea cancels BSGR, Vale iron ore mining permits

jueves 17 de abril de 2014 17:57 GYT

* Report says BSGR obtained mining rights through corruption

* Recommends BSGR and Vale be stripped of concessions

* Concessions awarded in "fraudulent" conditions-govt. (Recasts, adds government confirmation, background)

By Saliou Samb

CONAKRY, April 17 (Reuters) - Guinea's government has accepted a report recommending the cancellation of two iron ore concessions held by BSG Resources and its joint venture partner, Brazilian miner Vale, a spokesman said on state television on Thursday.

A technical committee charged with reviewing the West African nation's mining deals released a report last week accusing BSGR, the mining branch of Israeli billionaire Beny Steinmetz's conglomerate, of obtaining the rights through corruption.

The committee's report recommended that Guinea withdraw the mining permit held by VBG, the joint venture of BSGR and Vale, in the giant Simandou iron ore deposit and cancel its Zogota mining concession.

"The cabinet approves the recommendations of the technical committee," government spokesman Damantang Albert Camara said, adding that the decision was linked to the "fraudulent nature of the conditions in which the permits were granted."

Reuters reported earlier on Thursday that the committee's recommendations would be approved, citing a senior government source. The same source said the contracts would be officially cancelled via a presidential decree late on Thursday evening.   Continuación...