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dipsydoodle

(42,239 posts)
Tue Apr 16, 2013, 07:52 PM Apr 2013

FBI arrest agent over bribery cover up claim in battle over $10bn mountain

A battle over one of the world's richest mineral deposits has taken a dramatic turn after the FBI announced the arrest of a representative of the billionaire businessman who had acquired it in deal that raised eyebrows, even within the buccaneering world of African mining.

The arrest follows years of bitter claim and counter-claim over Simandou, a mountain in the remote interior of the impoverished west African country of Guinea that is so laden with iron ore that its exploitation rights are valued at around $10bn.

Beny Steinmetz, one of the world's wealthiest men, acquired the rights to extract half the ore at Simandou by pledging to invest just $165m to develop a mine at the mountain. Shortly afterwards, he sold half of his stake for £2.5bn. It was hailed as the most stunning private mining deal for decades: the world's finest untapped iron ore deposit, one worth billions of dollars, had been snapped up for a song.

After the wind of democratic change swept through Guinea, however – and after the US justice department decided to mount an investigation into circumstances in which the glittering prize at Simandou changed hands – that deal was appearing to look distinctly less attractive.

http://www.guardian.co.uk/world/2013/apr/16/fbi-arrest-bribery-10bn-mountain

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