Sierra Leone - China's Shandong Iron and Steel has acquired African Minerals’ (AML) 75 % stake in the Tonkolili iron ore mine in Sierra Leone.
This takes its ownership up to 100 % of the equity of Tonkolili Iron Ore Ltd and the associated infrastructure company African Port and Railway Services.
The Administrators understand that Shandong has acquired AML’s interest in those project companies through an enforcement sale over AML's shares in intermediate holding companies and that this sale was implemented by Madison Pacific Trust, as security agent under the group’s pre-export finance facility, on the instructions of Shandong Steel Hongkong Zengli Ltd, the secured lender under that facility.
In conjunction with their legal advisers, the Administrators are continuing to investigate the circumstances of the sale with a view to ensuring that AML’s interest has been dealt with properly, according to the law.
The Tonkolili mine was placed on care and maintenance late in 2014 as a result of weak iron ore prices.