Mining company accused of bribing its way into the world's largest iron ore project claims it was victim of a conspiracy, High Court hears

BSGR claim the firm’s West African mine was seized by the Guinean President because he needed to pay off those who helped him allegedly rig his election

Beny Steinmetz made his fortune in diamond trading (Shaun Curry)

A mining company accused of bribing its way to the world’s largest iron ore project and potentially billions of pounds in profits was the victim of an international conspiracy, the High Court has heard.

Lawyers for the Guernsey-based BSGR claimed the firm’s West African mine was unlawfully seized by the Guinean President Alpha Condé because he needed to pay off those who helped him allegedly rig his 2010 election.

The High Court heard President Condé conspired with wealthy South African businessmen and ANC leaders to become President of Guinea. He was claimed to have won the presidency using a company backed by South African intelligence officers which, the court was told, manipulated the ballot-counting operation and invented more than a million fictitious voters to support Mr Condé’s candidacy.

In return, Mr Condé is claimed to have repaid them after his victory with multi-million-pound mining contracts, including removing BSGR’s contracts to mine iron ore deposits in Simandou, southern Guinea. The contracts were instead given to a wealthy South African businessman, the court heard, who is said to have backed Mr Condé’s election bid with millions of dollars.

BSGR's lawyers claimed the firm’s West African mine was unlawfully seized by the Guinean President Alpha Condé (Getty Images)

When BSGR took the government of Guinea to an international arbitration court seeking compensation, President Condé is accused of concocting false corruption allegations against the company to justify the seizure of its mining rights.

The extraordinary claims were made as BSGR, which is owned by a controversial Israeli diamond trader Beny Steinmetz, challenged a demand by the Serious Fraud Office (SFO) that the company and its British lawyers Mishcon de Reya provide tens of thousands of documents relating to the Guinean mining deals.

The SFO demand followed an international request by the Guinean government for help with its investigation into claims that BSGR secured the mining rights by bribing the former President of Guinea Lansana Conté. The company denies the corruption claims.

James Lewis QC, for BSGR, claimed the Guinean request was “politically motivated and made in bad faith” and should not have been agreed to by the Home Secretary Theresa May or the SFO. He said two company employees had been subjected to arbitrary arrest and jailed for seven months in the Guinean capital Conakry as part of a campaign organised by President Condé.

Rejecting the judicial review request, Lord Justice Nigel Davis said it wasn’t the place of the High Court to determine the truth of the allegations made, “particularly when the evidence is so contentious”.

In a statement, Dag Lars Cramer, chief executive of BSGR’s management company, said last night: “The decision is procedural only, and will allow BSGR to provide the SFO with information that can be passed on to the government of Guinea to demonstrate the absence of any wrongdoing by BSGR. We will continue to vigorously defend and pursue BSGR’s rightful and legal rights.”