Sinochem Xinxun Africa Mining Sierra Leone Executive Chairman Frank Timish announced on the 2nd that it had signed a joint mining agreement worth US$1.5 billion with China’s Shandong Iron and Steel Group on the 1st. Timish stated in a press communique issued on the same day that the two sides will jointly explore the Sierra Coralili iron mine in Sierra Leone. The agreement confirms the scale and scope of the mining and the plan to accelerate the construction of the second phase of the project. Africa Mining welcomes Shandong Iron and Steel Group to join in. It also invested in Tongli Lili Iron Mine. According to the agreement, Shandong Iron and Steel Group will invest 1.5 billion U.S. dollars in the Tongkelili Iron Mine to obtain a 25% interest in the mine. In the first phase of mining, Shandong Iron and Steel Group can purchase 2 million tons of iron ore from the mine each year; from the second year after the start of the second period, Shandong Steel Group can purchase 8 million tons each year; from the third period, each year Can buy 10 million tons. As an investor, the price of iron ore purchased by Shandong Iron and Steel Group will enjoy a discount of up to 15%. Africa Minerals entered Sierra Leone in 1996 and discovered world-class iron ore in Tongkelili, which is about 200 kilometers east of Freetown, capital of Serbia, with reserves of 12.8 billion tons, which can be exploited for 60 years. After the investment by Shandong Iron and Steel Group, the total investment of Tongkelili Iron Mine will reach 6 billion US dollars. African Mining emphasized that the company will build railroads and other necessary facilities from the port to the mining area.
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