Rio Tinto sues Vale over alleged conspiracy to steal mine rights

Rio Tinto has sued Vale, Israeli billionaire Beny Steinmetz and his BSG Resources alleging they conspired to steal mining rights to the world’s biggest untapped iron-ore deposit by bribing officials in Guinea, according to the Australian Financial Review.

Vale used information obtained from Rio during discussions in New York to buy a stake in the Simandou property in southeast Guinea, and secretly passed it on to Steinmetz and BSGR to back their bid to get the mining rights, Rio said in a complaint filed in federal court in New York.

Rio said it spent 11 years and hundreds of millions of dollars developing mining operations at Simandou. It lost half its interest in the property in 2008, valued in the billions of dollars, when the Guinean government said it planned to give the stake to BSGR, according to the complaint.

Steinmetz and BSGR bribed Guinean officials, giving $US200 million to then mining minister Mahmoud Thiam, Rio claimed.

BSGR, known mainly for diamond mining, partnered with Vale because the company had iron mining experience and resources to develop the mine, Rio alleged.

Arrow LNG merger is closer: Shell

Royal Dutch Shell has signalled that it is moving closer to a merger for its Arrow LNG venture in Queensland involving one or more of the other liquefied natural gas projects in the state, according to the Australian Financial Review.

Any deal would not need investment in expensive new LNG infrastructure.

Chief financial officer Simon Henry said on a conference call from London yesterday that one particular option was shaping up as more likely for Arrow, but declined to give details.

He said the work to “reframe” Arrow LNG, which Shell owns jointly with PetroChina, could involve collaboration “with one or more” of the existing three LNG projects in Queensland.

Padbury pulls plug on $6.4b Oakajee port and rail project

Padbury Mining's controversial plan to develop the $6.4 billion Oakajee port and rail project is over after the company signed a termination deed with companies linked to Sydney man Roland Bleyer, according to the Sydney Morning Herald.

After three weeks of mystery and intrigue about the unlikely deal, Padbury told the ASX late on Wednesday it had been cancelled, and the parties involved had been released from any claims arising from it.

“The effect of the deed of termination and release is to terminate the agreement, and to release and discharge the parties from any claims arising under or in connection with the agreement,” the company said.