Shandong takes control of African Minerals debt, demands repayment

Sierra Leone iron ore miner African Minerals’ largest shareholder, Shandong Iron & Steel Group (SISG), has taken control of a significant proportion of the company’s debt in the latest hit for the struggling miner.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

SISG subsidiary Shandong Steel Hong Kong Zengli took control of a $250 million pre-payment facility from African Minerals bank lenders including Citi and Standard Chartered on Thursday February 26, African Minerals said on Friday.

SISG holds 25% of African Minerals.

The new lender has demanded immediate repayment of the outstanding $166.7 million of the debt, which has been in default since November.

African Minerals, which is chaired by its founder, Romanian-Australian resources entrepreneur Frank Timis, did not have sufficient funds to make the payment demanded, it said.

In a separate move, the SISG subsidiary took out an injunction at the High Court of Sierra Leone on February 23 to halt African Minerals, its subsidiaries or Frank Timis from taking any steps to liquidate the company or its assets.

A hearing on the case was due today, March 2.

What to read next
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed