Project ID: 30068

CDB provides $1.2 billion loan to SISG to facilitate acquisition of 25% ownership stake in Tonkolili Iron Mine (Linked to Project ID#67499 and #67503)

Commitment amount

$ 1222205631.0

Constant 2017 USD

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Sierra Leone

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

Concessional

Vague

Category

Intent

Commercial (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2012

Completion

2012

2012-04-02

Actual

Description

In July 2010, African Minerals Ltd. signed a Memorandum of Understanding (MOU) with Shandong Iron and Steel Group (SISG) — a company controlled by the Shandong Provincial Government, regarding a $1.5 billion investment in the Tonkolili iron mine in Sierra Leone. Then, in 2012, China Development Bank issued a $1.2 billion loan to Shandong Steel Hong Kong Resources, a subsidiary of Shandong Iron & Steel Group (SISG), to facilitate its acquisition of three subsidiaries — Tonkolili Iron Ore, African Railway & Port Services and African Power — from African Minerals Limited (AML). Shandong Steel Hong Kong Resources used the proceeds from this loan to facilitate the acquisition of a 25% ownership stake in the Tonkolili iron ore mine and and related power infrastructure projects in Sierra Leone. On April 2, 2012, SISG successfully purchased a 25% ownership stake in the Tonkolili iron mine and related power infrastructure projects from AML. AML said it will use the capital from SISG to construct a railway line linking Tonkolili mine and the coast (see Project ID#20210). The Tonkolili mine has a proven reserve of 10.5 billion tons of iron ore. It contains a hematite reserve that is estimated to have 100 to 200 million tonnes in deposit. In December 2014, AML announced that due to a lack of funding, the mine was being closed. The company was also facing financial problems at the time. (山钢集团在塞拉利昂百亿投资遇挫). See Project ID#67499 for SISG's second investment in the mine in 2015 and Project ID#67503 for an investment in 2016.

Additional details

The Chinese project title is 唐克里里铁矿项目.

Number of official sources

4

Number of unofficial sources

5

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Shandong Iron and Steel Group Co., Ltd. [State-owned Company]

Implementing agencies [Type]

African Minerals, Ltd. [Private Sector]; Shandong Iron and Steel Group Co., Ltd. [State-owned Company]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No