Thursday, April 1, 2010

China Railway Takes Stake In African Minerals

Funds Will Develop Sierra Leone Iron Ore Project



Guernsey-based exploration company, African Minerals Ltd., has signed an agreement with China Railway Materials Commercial Corp. to develop the Tonkolili iron-ore project in Sierra Leone.

Under the terms of the agreement China Railway will take a 12.5% stake in Africa Minerals in a share issued that will raise £167.8 million, according to a statement released by Africa Minerals on Thursday. The funds will enable Africa Minerals to begin the first phase of production at Tonkolili.

This is the latest in a series of Chinese overseas investments to attempt to become less dependent on the three largest iron ore producers, Rio Tinto, Vale and BHP Billiton.

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