(Updates with details, background)
By Silvia Antonioli and Abhiram Nandakumar
March 3 (Reuters) - African Minerals said China'sShandong, its partner in the Tonkolili iron ore mine in SierraLeone, is seeking control of the whole project, after taking onsome of African Minerals' debt from banks and demandingimmediate repayment last week.
London-listed African Minerals, which owns 75 percent ofTonkolili, has been battered by costs related to the Ebolaoutbreak in West Africa and a rout in iron ore prices over thelast year.
This resulted in it having to shut its operations in SierraLeone in late November over a lack of working capital and todefault on repayment of a $250 million pre-export finance debt.
Last week, Shandong, which owns 25 percent inTonkolili, bought control of the finance facility from group ofbanks including Standard Chartered and Citi and demandedimmediate repayment of the outstanding $166.7 million, whichAfrican Minerals could not meet.
The loan is secured against certain assets of the borrower,which allows Shandong to move against the assets.
"The lender has taken control of the holding companies (inthe Tonkolili project) by appointing new directors who have avoting majority, and has taken steps to take control ofAfrican Minerals' 75 percent shareholding in the operatingcompanies by appointing replacement directors to thosecompanies," African Minerals said in a statement.
"The Company is seeking legal advice on the effectiveness ofthese actions."
No-one was immediately available at Shandong to comment.
Shares in African Minerals have been suspended since Nov. 20due to uncertainty about the company's future.
Also in November, its chairman and founder Frank Timis hasbought the nearby Marampa iron ore mine from London Mining,which entered administration last year. (Editing by David Evans)