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)

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