Mining changes
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Sir Mick Davis, the former head of the Xstrata mining company, has severed ties with Niron Metals, a money-making car he designed to build a major steel mine in Guinea.
According to a statement from the Companies House, Davis, the former chairman of Niron, has resigned as director this month and is no longer the “director” at the business company.
Davis, a former Conservative leader of the “Mick the Miner” party, is one of the most well-known names in the industry, having served as director of Billiton and Xstrata CEO until Glencore acquired it in 2013.
After leaving Xstastra he set up X2 Resources, a mining vehicle that earned billions of dollars from investors but eventually failed to sell.
Niron registered in the UK in 2018 and a year later was asked to create a metal grid for Zogata by BSGR, a mining group controlled by the family of Israeli tycoon Beny Steinmetz.
The alliance was part of A major alliance between BSGR and the Guinean government which helped end a long-running dispute over mining in West Africa’s richest country, with President Alpha Condé defeated this month in a war.
Davis’ idea of ending Niron’s relationship was taken before Condé was demolished, according to people who are aware of this. They say Davis realized it could take years before Niron found a way to the Zogata steel market and that he wanted to focus on other jobs.
Earlier this year Davis set up a fund to use on battery power. The car, Vision Blue Resources, made its first start in February and also helped launch a special $ 300m car that was registered in New York.
Guinea has some of the world’s most valuable gemstones, including the giant Simandou. But the country has failed to take advantage of its natural resources.
China-backed alliance has begun work on 650km train ride to Guinea which would link Simandou with other mines that could be formed by a deep water port on the coast. However, it may take years to complete.
Niron signed a memorandum of understanding in 2019 to transport its iron ore via Liberia near the Buchanan port on a railway line operated by ArcelorMittal that had breathing power. He later completed a study on the feasibility of Zogota funds disbursed to the Guinean government last year.
But the idea of shipping iron ore through Liberia is questionable. ArcelorMittal and Monrovia recently announced a new stone-making contract in which the metalmaker made three stones at his Yekepa mine in Liberia and made another $ 800m.
Niron said it continued to “explore a sustainable, long-term approach to unlocking the full potential of Zogota’s work to benefit all stakeholders”.
“We thank Sir Mick for his excellent leadership and insight during his time at Niron,” he said. “Sir Mick played a key role in the growth of Niron and promoted the re-enlightenment of the potential of the steel industry in Guinea. We wish him well for the future.”
Other Niron executives include Greek fund managers Marcos Camhis and Varda Shine, a former diamond trade executive at De Beers.