Steinmetz skips Vale hearing, risking $1.2B loss
Beny Steinmetz’s mining company may be asked to pay as much as $1.2B to former partner Vale (VALE +5.9%) after choosing not to attend an arbitration hearing in a dispute over Guinea mine rights, Bloomberg reports.
An unfavorable arbitration ruling would be the latest setback for Steinmetz, as he faces a string of corruption investigations resulting from his failed investment in the giant Simandou iron ore deposit.
If the court - which could hand down its ruling on the award later this year - rules in Vale’s favor due to Steinmetz’s absence, the company would seek to enforce the judgment, requiring court-approved asset-seizure notices, according to the report.
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