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BSG Resources Says Former Adviser FTI Agrees to Pay Compensation

BSG Resources Ltd., a company controlled by Israeli billionaire Beny Steinmetz, said its former public relations adviser FTI Consulting LLP has agreed to pay “substantial compensation” and legal costs to settle actions brought earlier this year.

The damages paid will be donated to “charities and good causes working in Guinea,” BSG Resources said today in an e-mailed statement, without giving a figure. FTI Consulting said in a separate statement the claims were settled for 90,000 euros ($120,000) “without any admission of liability.”

BSGR filed a lawsuit in a London court two months ago that claimed FTI was involved in a campaign linked to George Soros that sought to strip BSGR of rights to an iron ore project in Guinea. BSGR claimed that FTI was pressured to drop its contract to provide public relations advice to the mining company by Mark Malloch-Brown, its chairman for Europe, Middle East and Africa and who has links to Soros.

Both FTI and Malloch-Brown have denied the claims brought against them “in their entirety as baseless and without any merit,” FTI said in its statement.

BSGR said in March that Guinea was preparing to remove mining rights from its joint venture with Vale SA, which planned a $10 billion operation. A U.S. grand jury in April indicted a French citizen who the Guinea government has said has ties to BSGR. Frederic Cilins, 50, has been accused of interfering with an investigation into bribes paid for mining rights in Guinea.

BSGR has denied any wrongdoing and Cilins has pleaded not guilty.

The case in London is BSG Resources v. FTI Consulting, High Court of Justices, Queen’s Bench Division.

To contact the reporter on this story: Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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