Oxera’s expert evidence helps Vale to achieve a successful outcome in a multi-billion-dollar international arbitration.

An LCIA tribunal, established in respect of the dispute between Vale (a Brazilian mining company) and BSG Resources (a mining company registered in Guernsey), has ruled in favour of Vale with an award of over US$1.2bn in damages. Together with pre-award interest, the total award amount exceeds $2bn, making it one of the largest commercial arbitration awards ever made.

In 2008, BSGR was awarded the rights for mining concessions in the Simandou region in eastern Guinea, which is believed to be the largest untapped iron-ore deposit in the world. Two years later, Vale acquired a 51% stake in the project, and started to make investments to develop the mine. However, in 2014, the concession rights awarded to BSGR were revoked after a government committee in Guinea found that BSGR had obtained them through the payment of bribes.

The tribunal ruled that BSGR had made fraudulent representations on which Vale relied when it entered the joint venture. Dr Min Shi, Oxera Partner, provided forensic expert evidence regarding the amount of investment that Vale made before the concession rights were revoked. Dr Shi was examined at the February 2017 hearing and ‘the Tribunal found her a competent and credible expert.’

Ranked in the top 10 of expert witness firms in the Global Arbitration Review 100 Expert Witness Firms’ Power Index 2019, Oxera offers expert witness services in financial valuation and damage quantification in the context of disputes. For more on our offering in the arbitration and commercial litigation area, see our website.

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Dr Min Shi
Partner