[miningmx.com] – ANALYSTS and investors have called for an investigation into the collapse in March of African Minerals, the UK-listed iron ore development company chaired by controversial mining magnate, Frank Timiș.
In an article by Bloomberg News, Russell Fryer, founder of Baobab Asset Management and an investor in Timis’ company said: “African Minerals constricted newsflow to shareholders. In this case, no news was bad news. There are big questions over some of the board decisions.’
The company’s collapse was put down to the effects of the Ebola virus and the decline in the iron ore price which left it with $766m in debt including a $400m convertible bond, which it defaulted on in February, said Bloomberg News. Its partner, Shandong Iron and Steel group eventually bought African Minerals’ key asset, the Tonkilili mine in Sierra Leone, for $170m
“Investors have every right to feel aggrieved,’ John Meyer, a mining analyst at SP Angel told the newswire.
“They’ve been sold out by Timis. With iron-ore prices where they are, it ought to still be running. Timis’s mismanagement has allowed Shandong to take possession of the assets, leaving investors with little hope of compensation,’ Meyer said.
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