Guinea govt approves proposal to strip BSGR, Vale of mining permits -source

CONAKRY, April 17 Thu Apr 17, 2014 9:34am EDT

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CONAKRY, April 17 (Reuters) - Guinea's government has approved a report recommending that BSG Resources (BSGR) and its joint venture partner, Brazilian mining giant Vale, be stripped of two iron ore concessions, a Guinean government source said on Thursday.

"The cabinet has approved the technical committee's recommendations," the source, who asked not to be named, told Reuters after a cabinet meeting on Thursday.

The recommendations were made in a report released last week that accused BSGR of obtaining the rights by corruption. BSGR, the mining branch of Israeli billionaire Beny Steinmetz's conglomerate, has denied the allegations and said it would seek international arbitration. (Reporting by Saliou Samb; Writing by David Lewis, editing by David Evans)

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