By Silvia Antonioli
LONDON, March 6 (Reuters) - Sierra Leone-focused miningcompany African Minerals said on Friday it will appointadministrators after failing to repay its lender and partner inthe Tonkolili iron ore project Shandong Iron and Steel Group.
After taking on some of African Minerals' debt from banksand demanding immediate repayment last week, Shandong, whichowns 25 percent in Tonkolili, took control of the holdingcompanies in the project.
"Following the events announced last week andearlier this week, and further discussions with Shandong Ironand Steel Group, the board has concluded that there is noreasonable prospect of it being able to achieve a negotiatedsolution with (Shandong)," African Minerals said in a statement.
London Mining a company which owned Marampa, an iron oremine near Tonkolili, also went into administration last year.
Both companies have been battered by costs related to theEbola outbreak in West Africa and a rout in iron ore prices overthe last year.
African Minerals shut its operations in Sierra Leone in lateNovember over a lack of working capital and its shares have beensuspended since Nov. 20 due to uncertainty about the company'sfuture.
In November, African Minerals' chairman and founder FrankTimis bought Marampa and agreed access for Marampa's iron ore toAfrican Minerals' rail and port infrastructure. (Editing by Elaine Hardcastle)