One week ago, BSG Resources wrote a letter to Rio Tinto
(ASX:RIO), threatening a lawsuit in regards to mining rights for the Simandou iron ore project in Guinea.
Last month, Rio Tinto sacked its Energy & Minerals chief executive Alan Davies, following an internal bribery investigation.
Now the attention has turned to what role BSG Resources played – with its owner, billionaire Beny Steinmtez, currently being detained by police in Israel for questioning. It has been alleged that BSG Resources and certain employees of Rio Tinto were involved in bribing government officials in Guinea for Simandou mining rights. Steinmetz will be held under house arrest until 2 January 2017.
BSG’s president, Asher Avidan, has also been arrested, for his suspected involvement in this ongoing bribery scandal.
Rio Tinto posted a net profit of $2.3 billion at 30 June 2016.
