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Thursday, 3 July 2014

Dispute affects ore delivery from Guinea Conakry

London-listed Bellzone and the China International Fund (CIF), its joint venture (JV) partner in the Forécariah iron ore project (FJV) in Guinea, are in a dispute with the contracted barge operator (trans-shipper) at Konta Port.

The dispute arose over FJV management’s concerns about safety performance, operations efficiency, and charges raised by the trans-shipper.

According to Bellzone, FJV management is in discussions with the trans-shipper, and no shipments are expected to made until the dispute is resolved. The dispute has not impacted production.

A legal case has been brought against FJV in Guinea by a former contractor alleging an outstanding payment for construction works had been formally dismissed with costs in the Court of Appeal in Conakry. The JV is incorporated in Singapore with a wholly owned Guinea subsidiary as the operating company. FJV has delivered 268 000 tonnes to market so far this year, and has 68 000 tonnes ready for shipping.

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