African Minerals Ltd., an AIM-Listed mineral
exploration and development company,
and Chinese steel producer Shandong
Iron & Steel have entered into a Memorandum
of Understanding (MoU) that calls
for investment by Shandong of $1.5 billion
to acquire approximately 25% of
African Minerals’ Tonkolili iron ore project
in east-central Sierra Leone, West Africa,
and a similar interest in related infrastructure
projects. The investment will be
accompanied by an off-take agreement for
up to 10 million mt/y of iron ore at discounted
prices.
African Minerals will use the funding to
develop an all-rail transport and logistics
system to serve the Tonkolili project instead
of its originally intended combined haul
road and rail system. The company is now
targeting production of 10 million mt/y of
hematite ore by the fourth quarter of 2011,
to be followed by an expansion to 25 million
mt/y by the fourth quarter of 2012.
Subject to due diligence by Shandong,
definitive agreements were expected to be
signed by September 6, 2010.
As featured in Womp 2010 Vol 07 - www.womp-int.com
