Steinmetz's BSGR Bankruptcy Fends Off Vale's $2 Billion Award

Billionaire Beny Steinmetz’s mining company sought bankruptcy protection in the U.S., two months after losing a $2 billion arbitration award to Brazilian mining giant Vale SA, Bloomberg News reported. The court filing by BSG Resources Ltd. on Monday could stymie Vale’s effort to enforce the award, which stems from an ill-fated joint venture with BSGR at the Simandou iron ore mine in Guinea. The government stripped their venture of its rights to Simandou following a probe that found licenses were obtained through corruption. BSGR lists its only U.S. asset as a pending legal claim against billionaire George Soros, according to the Chapter 15 court filing in Manhattan. Steinmetz’s firm claims Soros financed a conspiracy to oust BSGR from the Simandou deposit, an accusation that Soros maintains is “entirely false.” The dispute between the two mining companies stems from the 2014 decision by Guinea to revoke the licenses held by the joint venture. Read more