Bloomberg reports that Beny Steinmetz has ended a seven-year-old dispute with Guinea, a mineral rich country in West Africa. Reportedly, the settlement was brokered by former French President Nicolas Sarkozy.
As a result of the agreement, Steinmetz-controlled BSG Resources Ltd. and Guinean President Alpha Conde have both withdrawn allegations of corruption and agreed to drop a two-year-old arbitration case over the Simandou iron-ore project.
As part of the agreement, the well-known mining moghul Mick Davis will develop the Zogota iron-ore mine by means of a newly founded company named Niron Metals. While BSGR, which is owned by a Steinmetz family-controlled entity, relinquishes its rights to two mineral projects, Simandou and Zogota, BSGR does retain an economic interest to the latter in Zogota, an iron mine that holds great potential.
"Niron believes that the Zogota deposit can be brought into production on an accelerated timetable, thereby helping to unlock the potential of Guinea's rich resources for the benefit of all stakeholders, including the Government and people of Guinea," Davis' company said in a statement.