Shandong Province-based Chinese steelmaker Shandong Iron and Steel Group has announced that it has acquired the remaining 75 percent stake in the Tonkolili iron ore mine in Sierra Leone, Africa, from the loss-making mining company African Minerals. Previously in July 2011, Shandong Steel Group had acquired a 25 percent stake in the Tonkolili iron ore mine from African Minerals at a cost of about $1.5 billion.
Shandong Steel Group now holds 100 percent equity in Tonkolili and will also own the associated infrastructure company, namely, African Port and Railway Services.
Shandong Steel Group also stated that it will invest $600 million in phase two of the Tonkolili project, increasing the expected iron ore output to 25 million mt per year.
Tonkolili is the second-largest iron ore mine in Africa and has one of the largest magnetite iron ore deposits in the world.