Prosecutors open investigation into Vale’s omission on failed African project

Friday, 26 March 2021 21:35:14 (GMT+3)   |   Sao Paulo

Federal prosecutors in the state of Rio de Janeiro (MP-RJ) determined there should be a police investigation into Vale’s allegedly fraudulent omission in a failed African project, a media report by Valor said this week. Vale said it wasn’t aware of the police investigation.

According to prosecutors, Vale might have omitted relevant information to shareholders and investors in the failed joint-venture (JV) in Simandou, Africa.

Vale paid $500 million in 2010 to own 51 percent of the BSG Resources (BSGR) iron ore project. The Guinean government annulled the iron ore concession in 2014, following corruption charges against BSGR.

Federal prosecutors also requested that the Brazilian securities exchange commission, CVM, provide further information about the case.

Earlier this year, Benjamin Steinmetz, Vale’s former iron ore partner in the Simandou project, was convicted for corruption and malicious falsehood crimes in Switzerland, as reported by SteelOrbis.

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