Soa Paulo, 1 May 2010

Brazilian mining giant Vale bought a majority stake in a division of mining company BSG Resources in Guinea on Friday, spending $2.5 billion to tap what it called "among the best deposits" of iron ore in the world. The move is significant for Vale, the world's largest iron ore miner that is aggressively seeking opportunities in Africa, and for Guinea, where a political crisis has largely discouraged major foreign investment.

"Guinea will be a player on the world iron market within four years and could be the No. 3 producer in six years," Mines Minister Mahmoud Thiam said. "This decision wills also kick-start other mining projects in Guinea."

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