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The Chinese steel and iron giant, Shandong Iron and Steel group has acquired the remaining 75% stake in Sierra Leone's Tonkolili iron ore mines from the mining giant, African Minerals Limited (AML).
According to a release issued Tuesday, the deal which involves 170 million dollars reportedly increases the Chinese control on the vast iron ore resources in Sierra Leone's Tonkokili district in the north of the country to 100%.
It also means that Shandong Iron and Steel group will assume control of the AML's associated infrastructure company African Port and Railway services, the press statement reports.
The change of hands in the ownership marks the largest investment in Sierra Leone's mining sector following months of financial problems facing AML, owned by a Romanian-British business man, Frank Timis.
In 2011 the Chinese firm had 25% stake by funding the AML railway project with a 1.5 billion dollars deal.
The fall in the global iron ore price is to be blamed largely for the problem with the AML which has been worsened by the Ebola crisis in West African states.
Tonkolili is said to be the second largest iron ore mine in Africa with one of the largest magnetic deposits in the world.
The downfall of the African Minerals which was until now, the largest single employer in the private sector in Sierra Leone, has worried many, particularly the government, which feared over the loss of revenue and jobs for the large unemployed youths in the country.
