April 20 (Reuters) - Chinese steel company Shandong Iron andSteel Group said it had acquired the remaining 75per cent stake in the Tonkolili iron ore mine in Sierra Leonefrom the mining company African Minerals for over $170million.
Shandong now has 100 per cent of equity in Tonkolili, andwill also own the associated infrastructure company African Portand Railway Services, it said in a press release.
Shandong will provide further funding including $600 millionto progress Phase 2 of the Tonkolili Project, which will seeproduction lifted to 25 million tonnes a year.
Last month, African Minerals said it had appointedadministrators after failing to repay Shandong, which was itslender and partner in the Tonkolili project.
African Minerals has been battered by a rout in iron oreprices and costs related to the Ebola outbreak in West Africa.
Tonkolili is the second largest iron ore mine in Africa andhas one of the largest magnetite deposits in the world.
Shandong said it intended to return the mine to fullproduction and protect the assets against the imminent wetseason. (Reporting by Shivam Srivastava in Bengaluru; Editing by KevinLiffey)