BSG on prowl for high-class mining assets
“One of the leading resource groups is on the hunt for world-class mining assets.
Beny Steinmetz Group, a private conglomerate, is stepping up its activities after the success of a $2.5bn iron ore deal in west Africa.
In a rare interview, BSG’s chief executive told the Financial Times that last month’s sale of its 51 per cent interest in its Guinean subsidiary to Brazil’s Vale, the world’s biggest iron ore miner, has prompted the move.
‘We are not focusing on ‘doable’ assets, but world-class assets,’ said Dag Cramer, chief executive. The company’s founder Beny Steinmetz – a billionaire Israeli entrepreneur – still plays a prominent role in arranging deals for BSG.”
Source: Financial Times, May 24 2010
- The sale of the Simandou South concession to Vale has delivered BSG $2.5 bln, of which $0.5 bln in cash.
- BSG still owns 13 bauxite concession in Guinea, a diamond project in Sierra Leone and a steel/scrap project in Azerbaijan.
- According to Dag Cramer, CEO of the conglomerate owning BSG Resources, the company is aiming for world-class assets and has 1 or 2 deals in the pipeline.
- Not only BSG is looking for world-class assets; all mining firms are. The difference between the firms is that BSG is betting on deposits in countries that currently are not very stable, hoping that these assets will increase in value if stability increases.
- One of the deals in BSG’s pipeline might result from their uranium exploration project.