Shares in African Minerals Ltd were up\u00c2\u00a020%\u00c2\u00a0this\u00c2\u00a0morning after the company announced a binding agreement with a state-owned Chinese entity over the Tonkolili iron-ore project in Sierra Leone.<\/p>\n
The Memorandum of Understanding (MOU) with Shandong Iron & Steel Group Co Ltd includes a three-stage, US$1.5 billion investment for approximately 25% of the project, valuing Tonkolili at US$6 billion.<\/p>\n
The funding will also allow for the shift from haul and rail logistics to an all-rail transport system, as well as a faster ramp up to phase two of the project, now expected by the end of 2012. Phase one production capacity of 10Mt\/y will be reached by the end of 2011.<\/p>\n
In return, Shandong will receive iron ore at discounted prices, starting at 5.32Mt\/y in stage one and increasing to 10Mt\/y by stage three, split between magnetite and hematite ore. The discount change will depend upon the prevailing price, ranging from 15% when prices exceed US$120\/t to no discount at all when prices are at, or below, US$60\/t.<\/p>\n
Stage one is expected to close by the end of September and will see Shandong investing US$800 million for a 13.3% stake in each of the subsidiaries involved in the project. The subsequent two stages will see investments of US$500 million and US$200 million.<\/p>\n
Shandong can also elect to receive iron-ore production equal to its percentage in the project, as long as it pays all production costs, tax and royalties in respect of production allocated.<\/p>\n
In April, African Minerals announced the sale of 12.5% of its shares to China Railway Materials Commercial Corp for \u00c2\u00a3168 million (US$250 million).<\/p>\n
Stay with Sierra Express Media, for your trusted place in news!<\/em><\/strong><\/p>\n Shares in African Minerals Ltd were up\u00c2\u00a020%\u00c2\u00a0this\u00c2\u00a0morning after the company announced a binding agreement with a state-owned Chinese entity over the Tonkolili iron-ore project in […]<\/p>\n","protected":false},"author":4,"featured_media":75801,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699,671,673,1],"tags":[1512,2194,4153,2187],"class_list":["post-11227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-featured","category-national-news","category-uncategorized","tag-african-minerals","tag-iron-ore","tag-shandong-iron-steel-group-co-ltd","tag-tonkolili"],"_links":{"self":[{"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=\/wp\/v2\/posts\/11227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11227"}],"version-history":[{"count":0,"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=\/wp\/v2\/posts\/11227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=\/wp\/v2\/media\/75801"}],"wp:attachment":[{"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sierraexpressmedia.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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