Steinmetz's Mining Firm Enters Administration

RAPAPORT... BSG Resources, diamond tycoon Beny Steinmetz's mining company, has entered administration, meaningcontrol of the group has been given to practitioners responsible for tryingto rescue the business. Malcolm Cohen and William Callewaert of BDO arethe court-appointed joint administrators, the advisory firm said Tuesday. They aretasked with operating in the creditors' best interests, with a secondary dutyto other stakeholders if there is any money left after all creditorsare paid in full. The administrators' primary focus is to try to return BSGR toa state where it can pay off its debts. In the event the company becomes stableenough to operate on its own, the administration will end, and the company will returnto its directors' control, BDO explained. BSGR faces separate court actions in both Paris and NewYork regarding its alleged connections to a bribery scandal over the rights to theSimandou iron-ore mining project (pictured) in Guinea, The Times reported Wednesday.Image: Rio Tinto