African Minerals says Shandong deal delayed

African Minerals said a $1.5 billion investment deal for its flagship iron ore project in Sierra Leone had been delayed due to problems getting the teams reviewing the deal to the country.

The parties had expected to have definitive agreements for the deal, under which China’s Shandong Iron & Steel will take a 25 percent stake in the Tonkolili mine, completed by Sept 6.

“Due diligence by Shandong is progressing well, albeit somewhat slower than planned due to the logistical issues of coordinating the due diligence process between China, Europe and Sierra Leone,” the company said in a statement on Wednesday.

A spokesman for the company said the delay was not affecting operations at the mine and that African Minerals still expected first ore to be delivered to port ready for shipment in the last quarter of 2011.

Shares in African Minerals closed on Thursday down 2 percent at 390.25 pence, valuing the business at 1.06 billion pounds.

Reuters-London

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