Guinea plans to cancel rights to massive iron ore deposit, held by BSG Resources, Vale

The government of Guinea says it plans to revoke the mining rights to one of the largest untapped iron ore deposits in the world, following a watchdog's recommendation.

A committee reviewing mining deals in the West African country has said it has evidence the exploitation rights were obtained through corrupt practices and recommended they be canceled. The deal is also under U.S. investigation.

Government spokesman Damantang Camara announced late Friday that Guinea would follow the committee's recommendation.

The rights are held by a joint-venture owned by Israeli billionaire Beny Steinmetz's BSG Resources and Brazilian mining firm, Vale. But the report focused its allegations on BSG Resources.

BSG Resources has said it will fight the allegations. Vale has said it does not believe it has been accused of wrongdoing.