UK-based BSG Resources Limited (BSGR) has announced that it has taken the first preparatory step to initiate arbitration proceedings with the International Centre for Settlement of Investment Disputes (ICSID) against the government of Guinea.
The notice of dispute relates to the Guinean government's decision to revoke BSGR's mining titles and agreements in the Zogota and Simandou regions of southeast Guinea in April this year.
BSGR is seeking the restitution of its mining titles and agreements as well as damages arising out of the revocation of these interests, which, it says, have been unlawfully expropriated through the illegal and dishonest practices of the government.
As SteelOrbis previously reported, in April the Republic of Guinea revoked the mining licenses for the Simandou and Zogota iron ore projects due to a technical committee report indicating that the mining licenses were obtained by Vale's partner BSGR through corrupt practices.