By Saliou Samb
CONAKRY, Jan 16 (Reuters) - Guinea is likely to take a decision within a month on the future of a joint-venture owned by BSG Resources and Brazilian miner Vale, after receiving answers from the group on a disputed contract, the head of a mining committee said on Thursday.
The West African country's government has accused BSGR, the mining arm of Israeli billionaire Beny Steinmetz's business conglomerate, of bribing officials to clinch a deal to explore the giant Simandou iron ore deposit in 2008.
Representatives of VBG, the joint-venture owned by BSGR and Vale VALE5.SA, were summoned by a committee reviewing mining licences to answer questions on the deal last month. The committee set a January deadline for additional responses. (Full Story)
BSGR has vigorously and repeatedly denied the allegations of wrongdoing and has in the past said it believes the committee's procedure to be "fundamentally unfair".
"VBG has replied punctually to our questions," committee president Nava Toure told Reuters.
"If the committee deems that the rights were acquired legally, VBG can pursue its normal activities. It if decides that there was really corruption, the penalty could go as far as the termination of rights," he added.
Toure said it would pass its final report onto a strategy committee which was set to make a final decision sometime between the end of January and mid-February. No definitive date for the decision has been set.
Another source familiar with the matter gave the same timeframe. A source close to the company confirmed that BSGR had responded to the committee, relaying its view that the committee had failed to produce evidence to substantiate its allegations.
Vale, which became BSGR's partner in Simandou in 2010, has repeatedly denied involvement in any events leading up to the licence being allocated in 2008, weeks before the death of then-president Lansana Conte.
Developing the northern part of Simandou is a key priority for the country, which is one of Africa's poorest, despite an abundance of mineral wealth.
As well as the Simandou concession, BSGR also has a licence in nearby Zogota in Guinea's south.
(Additional reporting by Silvia Antonioli in London; Writing by Emma Farge, editing by David Evans)
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