Posted: 11 Sep 2014 08:10 AM PDT

Aaron Thomas, the 26-year-old former mining CEO accused of using $7 million from the company's coffers to fund a lavish lifestyle, has had the allegations dismissed, his attorney told MINING.com.

Thomas, who was fired this year from the company he founded in 2010, was accused by the remaining shareholders of embezzling money buy luxury cars, private jets, exotic vacations and $20,000 breast implants for his Brazilian fiancée, among other extravagant expenses.

The complaint by London-based iron ore miner Oakmont has been"discontinued with prejudice," ruled the Manhattan Supreme Court. The legal term means the case has been dropped and that an undertaking is given it will never be re-filed.

According to Thomas' lawyers, the parties reached a confidential agreement in which the mining company agreed to withdraw all allegations against its former chief.

"[My client] is now looking toward the future and hopes to never again have to stand by and watch a Company with positive outlooks, leadership in the sector, and large growth potential be destroyed through pernicious company infighting, baseless allegations, and wasteful litigation," they said in an e-mail statement.

In practical terms, the settlement means that the 25% stake Thomas owned in the firm has been sold back to Oakmont for an undisclosed sum.

Ex-FBI boss hired by trust heading BSGR to run internal probe

Posted: 11 Sep 2014 06:59 AM PDT

The Simandou Mountains in Guinea hold some of the richest iron ore deposits in the world and has the potential to transform the fortunes of the impoverished West African nation.

The trust heading BSG Resources, the mining arm of Israeli tycoon Beny Steinmetz's empire, has hired ex-FBI director Louis Freeh and former U.S. Senator Joe Lieberman to conduct an internal probe into corruption allegations.

Citing a person familiar with the matter who "asked not to be identified," Bloomberg reports the confidential probe focus on claims that BSGR bribed Guinean officials to get lucrative rights over Simandou, a world-class iron-ore deposit.

Steinmetz's firm acquisition of such mining rights has been the subject of police investigations on three continents even before the West African nation government concluded the miner obtained concessions to the Simandou and Zogota areas through corrupt practices, revoking its rights.

BSGR continues to deny wrongdoing and says it is the victim of a plot to seize its assets. The company has vowed to "prove the allegations raised in Guinea's rigged and illegitimate process are false," and recently launched an international arbitration process to stop the West African nation from grating the Simonadou rights taken from BSGR to another company.

Steinmetz's company claim against the country at the International Centre for Settlement of Investment Disputes states the current president, Alpha Condé, conspired with a group of South African businessmen to rig the election that brought him to power in March 2010.

In return for their money and help, the filing claims, they would be given a slice of the country's mining rights when Condé came to power, British newspaper The Independent reports. These rights, the allegation says, included those owned by Steinmetz.

The case goes on to argue that the billionaire philanthropist George Soros worked with the President to draft a new mining code that would re-examine previous licence awards and effectively mean the Steinmetz licenses were illegal. It alleges Soros then encouraged an NGO he finances, Global Witness, to launch a "smear campaign" Steinmetz's firm.

Guinea's President has denied such accusations.

These are the top risks miners face these days

Posted: 11 Sep 2014 04:08 AM PDT

Productivity, followed by capital decisions and obtaining a social license to operate, are now the top three risks faced by mining and metals companies globally, according to the latest report by EY.

In Business risks facing mining and metals the analysts claim that 2014 has been the year in which CEOs begin to realize that regaining lost productivity is critical for long-term profitability.

These are the top risks miners face these days

Without a social licence to operate, miners have a lot to lose.

The study acknowledges that the major industry players have made steady progress on capital management and optimizations, following a spate of asset write downs that peaked last year.

However the report notes that when it comes to capital challenges little has changed in the past 12 months for many juniors and explorers.

Bruce Sprague, EY's Canadian Mining & Metals leader, says that the need for a social license to operate has become critical, as the number and size of projects being delayed or stopped by community and environmental activists continues to rise.

Access to water and energy is the only new entrant to this year's risks list. Burgeoning energy costs and competing water demands in many regions, particularly Chile, Peru, South Africa and Mongolia are starting to have a bigger impact on costs and companies' ability to operate.

Mining companies spent US$11.9 billion on water infrastructure globally last year alone — a 250% increase over 2009. And global energy prices have leapt 260% since 2000..

"Risks in the sector continue to shift in ranking but they all remain key priorities for companies," says Sprague.

Global demand for energy is expected to increase 36% by 2025, and with falling ore grades, this risk is higher every passing year, EY explains. As a consequence, the mining industry faces higher energy prices and volatility.

Image from Everett Collection|Shutterstock.

Case against 26-year old mining CEO accused of stealing $7m to fund luxury lifestyle dropped

Case against 26-year old mining CEO accused of stealing $7m to fund luxury lifestyle dropped

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