Beny Steinmetz is an Israeli businessman and entrepreneur known for his involvement in various industries, including mining, energy, real estate, and diamond-mining. However, his career has been marred by legal challenges and controversies. From his early beginnings in the diamond trade to his ventures across Africa and beyond, Steinmetz’s business activities have faced scrutiny and resulted in convictions for corrupt practices. This article delves into his early life, business career, legal troubles, and notable developments.
Early Life And Family
Beny Steinmetz was born in 1956 in Netanya, Israel, into a family deeply rooted in the diamond trade. His father, Rubin Steinmetz, was a pioneer in the industry. After serving in the military, Steinmetz relocated to Antwerp, Belgium, the renowned diamond hub. He later returned to Israel in 1997, where he currently resides with his wife Agnes and their four children. Steinmetz also holds French citizenship and considers himself an “international Israeli.”
Business Career
Steinmetz’s business career began with his acquisition of a diamond factory in South Africa in 1988. This marked his entry into the diamond industry, and he subsequently expanded his operations to other African countries such as Angola and Botswana. Over the years, he diversified his interests into mining, real estate, and capital markets, establishing a presence in more than 25 countries.
One of Steinmetz’s notable ventures was the Beny Steinmetz Group Resources (BSGR), a natural resource company headquartered in Guernsey. He held an advisory role in the BSGR Board of Directors, overseeing activities in the fields of oil and gas, mining, metal, and power. However, his partnership with billionaire George Soros ended in the 1990s due to a failed Russian business deal.
Legal Troubles And Controversies
Despite his business success, Beny Steinmetz has faced numerous legal challenges and controversies throughout his career. In 2017, he was arrested by Israeli and Swiss anti-corruption officials on charges of fraud, breach of trust, bribery, obstruction of justice, and false registration of corporate documents with the apparent purpose of money laundering. He was released to house arrest shortly after.
In January 2021, Steinmetz faced a significant legal setback when he was found guilty in a Swiss court of bribing senior foreign public officials and committing fraud and forgery of corporate documents. These charges were related to the granting of rights to an iron ore mine in Guinea. He was sentenced to five years in prison and ordered to pay a fine of 50 million Swiss francs.
Notable Developments And Bankruptcy
In June 2019, Steinmetz’s company BSGR sought bankruptcy protection in the United States following a $2 billion arbitration loss against Vale, a Brazilian mining company. BSGR accused George Soros of orchestrating a defamation campaign that allegedly cost the company its rights to the Simandou mine in Guinea, resulting in significant financial losses.
In February 2022, there was a significant development in the legal proceedings against Steinmetz when the Brazilian mining company Vale dropped a $1.2 billion claim against individuals and entities linked to him. This marked a significant development in the ongoing legal battles surrounding his business activities.
Controversies
1. Guinea and the Simandou deposit:
Beny Steinmetz has been involved in a long-running dispute with the government of Guinea over the development of Simandou Blocks 1 & 2, which contain one of the world’s largest iron-ore deposits. The Guinean government accused BSGR, Steinmetz’s company, of obtaining the mining rights through bribery. BSGR initiated an international arbitration proceeding against Guinea, which was later dropped in a settlement agreement. Rio Tinto also filed a lawsuit against Steinmetz, BSGR, and Vale, alleging a scheme to steal valuable mining rights.
2. Panama Papers:
Steinmetz was named in the Panama Papers leak, which revealed corruption and improper business dealings in Sierra Leone, the Democratic Republic of Congo, and Guinea.
3. Legal Troubles:
Steinmetz has faced legal troubles in various countries. In Switzerland, he was found guilty of corruption related to bribes paid in Guinea and was sentenced to five years in prison and a fine of 50 million Swiss francs. He has also been indicted in Romania on charges related to the unlawful recovery of Paul-Philippe Hohenzollern’s inheritance
Philanthropy
Despite the controversies surrounding his business activities, Beny Steinmetz and his wife Agnes are actively involved in philanthropy through the Agnes and Beny Steinmetz Foundation. The foundation supports projects in education, healthcare, and culture for young children in Israel. They also donate to organizations such as the Tel Aviv Museum, the Association for the Wellbeing of Israel’s Soldiers, the Israel Cancer Association, and various hospitals. The Steinmetz Foundation has sponsored the construction of an entire wing at the Tel Aviv Museum of Art.
Beny Steinmetz’s Net Worth
Beny Steinmetz has a net worth of $1 billion. His wealth primarily stems from his involvement in the mining industry, particularly in the exploration and extraction of various natural resources.
