Sierra Leone-based African Minerals on Jul 13 said that it has agreed that China's state-owned Shandong Iron &steel Group Co will invest $ 1.5 billion in its Tonkolili project, sources reported.

African Minerals said in a statement that Shandong Iron & Steel's investment will enable the Chinese steel maker to own 25% of the project. The project is estimated to be valued at $ 6 billion.

In addition, the two firms also signed an iron ore supply agreement. Pursuant to the agreement, Shandong Iron & Steel will purchase 10 million tonnes of iron ore produced from the Tonkolili mine per year at a discount price.

African Minerals said Shandong Iron & Steel's investment would be used to building an iron ore transportation railway linking the Tonkolili mine and the coast.

From indiainfoline

Editor Yu Meng