When an investment asset has potential to deliver returns for 100 years, the competition to be the sole owner can be intense. Such is the case with mining rights to the Simandou iron ore deposit in the West African nation of Guinea, where George Soros is involved in one of several lawsuits over the past few years. The dispute is aggressive, with Soros being called out as anti-Israeli in the suit, which dredges up well-worn charges the former hedge fund managers engages in a global conspiracy to manipulate numerous governments. The feud with Israeli mining magnate Beny Steinmetz dates back to 1998 and involves charges of manipulation and bribery.
BSGR Lawsuits fight against a "racketeer billionaire" who "puppeteered" government
The cost to develop Simandou is estimated at $20 billion, according to a Bloomberg report, and is estimated to have enough iron ore to deliver returns through the next generation and beyond. The fight brought by BSG Resources Ltd. (BSGR) involves some of the most successful billionaires and mining companies in the world.
BSGR filed suit against Soros and his Open Society Foundations in court Friday, opening the document by claiming Soros is a "racketeer billionaire" who "acts in utter disregard for the rule of law" while he "epitomizes" the well-worn phrase "power tends to corrupt; absolute power corrupts absolutely."
The suit claims Soros and "his minions" used "fraud, illegality, defamation and criminal misconduct" to besmirch BSGR's reputation, which led to them losing the contract to develop the mine in the Simandou mountain range.
Steinmetz and BSGR lost rights to develop the mine when the Guinean government ruled they obtained permits by paying million in bribes, including to the wife of the former President. They claim the government based the ruling on false reports spread by Soros and his affiliates, including the "Soros-funded law firm of DLA Piper."