London-listed, Africa-focused miner African Minerals has announced that it has cut its iron ore shipment forecast from its Tonkolili iron ore mine in Sierra Leone for 2012 due to the extended wet season. The previous forecast for iron shipments stood at 5-6 million mt.
The expansion project at Tonkolili is continuing. However, instead of a new port at Tagrin Point, the company now plans to expand the existing rail and port infrastructure at Pepel. The total capital expenditure on the revised expansion plan is estimated to be approximately $2 billion.
Additionally, African Minerals is seeking to increase its existing $100 million facility to a $150 million revolving credit facility, besides an additional working capital facility of up to $250 million to provide additional financial headroom during the ramp-up period.