UK-based African Minerals Limited (AML), which is developing the Tonkolili iron ore project in Sierra Leone, has announced that it has signed a revised memorandum of understanding (MoU) with Chinese steelmaker Shandong Iron and Steel Group in respect of Shandong's proposed $1.5 billion investment in AML's Tonkolili iron ore project and related infrastructure.
Accordingly, Shandong Steel will have the right to appoint a minimum of two out of five directors to the board of each project company and one director to the board of AML.
Phase I of the project is fully funded and at full capacity is expected to produce 12 million mt of iron ore per annum once it ramps up from initial production in the fourth quarter of the current year. Phases II and III are expected to boost annual output to 23 million mt and 45 million mt respectively.