Beijing - Chinese steel company Shandong Iron and Steel Group said it had acquired the remaining 75 percent stake in the Tonkolili iron ore mine in Sierra Leone from the mining company African Minerals for over $170 million.
Shandong now has 100 percent of equity in Tonkolili, and will also own the associated infrastructure company African Port and Railway Services, it said in a press release.
Shandong will provide further funding including $600 million to progress Phase 2 of the Tonkolili Project, which will see production lifted to 25 million tons a year.
Last month, African Minerals said it had appointed administrators after failing to repay Shandong, which was its lender and partner in the Tonkolili project.
African Minerals has been battered by a rout in iron ore prices and costs related to the Ebola outbreak in West Africa.
Tonkolili is the second largest iron ore mine in Africa and has one of the largest magnetite deposits in the world.
Shandong said it intended to return the mine to full production and protect the assets against the imminent wet season.
Reuters