African Minerals jumps 7% after $1.5 billion China injection
African Minerals Ltd., closed up 7.1% in London on Monday after completing an investment accord with Shandong Iron & Steel Group Co bringing the counter's gains for the year to 57% and giving it a market capitalization of some $3.6 billion.
Shandong will invest $1.5 billion for a 25% stake in African Minerals' massive the Tonkolili iron-ore project in Sierra Leone. Phase I of the project will cost $1.2bn and includes railway and port reconstruction in the war torn country while phase II and III will add another $8 billion to the bill. Sierra Leone, one of the world's poorest nations, is attracting increasing investments in its natural resources which also include diamonds and bauxite.