[miningmx.com] — AFRICAN Minerals has finally signed an agreement with China’s Shandong Iron & Steel that will see the world’s ninth-largest steel group invest $1.5bn in African Minerals’ flagship iron ore project in Sierra Leone.
Shandong will also purchase iron ore at a discounted price under an off-take arrangement and retains the option to buy up to 25% of annual iron ore production from each of Tonkolili’s three production phases based on benchmark prices.
African Minerals, the largest company on London’s junior AIM market, said in May it had negotiated improved terms from Shandong and hoped to finalise the agreement before an exclusivity period expired at the end of that month.
