Vale & Mr Steinmetz in NY Court over Simandou Arbitration Award
Brazilian Iron ore miner Vale has urged a US court to force Israeli billionaire Mr Beny Steinmetz to respond to the company’s efforts to track down assets and
Brazilian Iron ore miner Vale has urged a US court to force Israeli billionaire Mr Beny Steinmetz to respond to the company’s efforts to track down assets and obtain the USD 2 billion it was awarded last year as a result of arbitration. Mr Steinmetz is the founder and owner of BSG Resources, a company embroiled in a long-drawn-out dispute with Vale over lost rights to the massive Simandou iron ore project in Guinea.
Mr Steinmetz said in May 2019 that he had evidence that will help him reverse the London Court of International Arbitration award to Vale of USD 1.25 billion plus interests and costs, totalling USD 2 billion. He has asked New York-based federal court to force Vale to provide certain documents, which could allegedly prove the Brazilian miner was aware of potential problems with how the rights to develop Simandou had been obtained.
Brazilian magazine Piauí revealed last week that Mr Steinmetz hired private intelligence agency Black Cube to prove Vale had full knowledge of the process through which the companies gained access to Simandou. As part of the investigation, the detectives found that a former director at Vale between 2004 and 2014 reportedly said in a dinner he suspected irregularities in the Simandou concession. Piauí reported such meeting, held in a New York restaurant, was recorded on audio and video and could be used in court.