Lloyd's Law Reporter
VALE SA AND OTHERS V STEINMETZ AND OTHERS
[2021] EWCA Civ 1087, Court of Appeal, Lord Justice Males, Lord Justice Lewis and Lord Justice Bean, 16 July 2021
Arbitration – Effect of award on third party – Res judicata – Issue estoppel
By a joint venture agreement dated 30 April 2010 between Vale SA and BSGR, BSGR sold 51 per cent of a subsidiary company, BSGRG, to a wholly owned subsidiary of Vale. BSGRG held valuable mining licences from the Republic of Guinea. Vale was to pay an Initial Consideration of US$500 million payable by Vale, although in fact it was paid on Vale’s instructions by Vale International SA. BSGR was owned by Nysco, which was in turn owned by Balda, and the beneficiaries of Balda were Mr Steinmetz and members of his family. Some of the Initial Consideration went to Nysco and Balda. The Government of Guinea revoked the licences on the ground that they had been obtained by bribery. Vale commenced arbitration.