According to a report in Forbes Wednesday, Vale might have to forfeit $1 billion in investments at the Simandou iron ore deposit in Guinea if the Guinean government accepts the recommendations of a committee set up to review mining concessions awarded under previous administrations.
The committee recommended that Vale and its partner BSGR “should be stripped of the rights to exploit Simandou because BSGR obtained the concession through corruption.”
In the event that the government accepts the committee’s recommendations, a re-tendering process will allow Vale’s main competitors Rio Tinto and BHP Billiton to compete for the deposit.