#Beny Steinmetz#BSGR#BSG Resources#lawsuit#Vale SA#Guine

Associate of Beny Steinmetz Jailed Over Guinea Mine Scandal

The mining scandal involving BSG Resources and Beny Steinmetz continues.A former advisor to the company was sentence on Friday to two years in Federal p...

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|Jul 29|magazine4 min read

The mining scandal involving BSG Resources and Beny Steinmetz continues.

A former advisor to the company was sentence on Friday to two years in Federal prison for obstructing a criminal probe in connection with a bribery investigation in Guinea.

Frederic Cilins, a French business man, pleaded guilty to one count of obstruction and admitted attempting to bribe Mamadie Toure, a widow of former Guinea President Lansana Conte. The case alleges Guinean officials were compensated by Cilins for granting BSG Resources (BSGR) rights to Simandou, a world-class iron-ore deposit in the West African nation.

In a taped phone conversation, Cilins is heard telling Toure: “That has to be destroyed very urgently,” in response to documents tied to the alleged payments.

In addition of the two years in prison, the sentence includes three years of supervised release and a maximum fine of $75,000.

“I would like to apologize to the court for what I have done, and for the pain my family has endured,” Cilins said in a brief statement to the courtroom.

While BSGR has refuted any wrongdoing, the arrest of Cilins prompted Guinean officials to strip the company and its partner Vales SA of concessions to the Simandou mine. The company is seeking arbitration at the International Center for Settlement of Investment Disputes.

BSGR obtained rights to the Simandou mine in 2008 and sold a 51 percent stake in concession to Brazil’s Vale SA in 2010.

The company described the arrest as “wrongful” and has filed a lawsuit to reverse the revocation. Vale maintains any wrongdoing in the scandal occurred before it became involved in the project.