US District Judge Dismisses Rio Tinto Case Against BSG Resources

A judge for the U.S. Southern District of New York dismissed on all counts the Racketeer Influenced and Corrupt Organizations Act (RICO) complaint made by Rio Tinto Plc in August 2014 against BSG Resources (BSGR), Beny Steinmetz and other defendants including Vale. The dismissal of the case on Friday, November 20, by Judge Richard Berman, bars Rio from re-pleading its case and represents a significant victory for BSGR related to the Simandou iron ore project in Guinea. According to the court’s decision, Rio Tinto failed to allege any sufficient or coherent claim against BSGR and the others under the United States’ RICO 1970 and Rio’s conspiracy claim under RICO did not and could not, therefore, exist. According to BSG Resources, this claim is the latest in a long line of Rio Tinto’s attempts to deprive it of its legitimate interest in the Simandou project. A copy of the U.S. court judgment can be accessed at: http://media.buchanan.uk.com/20151120decisionandorder.pdf.