African Minerals in Sierra Leone says it is still broke, can’t pay debt

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Frank Timis

An iron ore mining company once known for its financial largesse and big spending in Sierra Leone has announced on the company’s website that it can not meet payments on its 400m convertible bond (the “Bond”).

“Under the terms of the Bond, the biannual coupon payment of $17m is due on 10 February 2015. The Company advises it has insufficient funds to meet this payment, and it is unlikely that such a payment will be made in the near future.”

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Mining on the company’s Tonkolili project was stopped late last year as iron ore prices reached historic lows. African Minerals says it will continue talks to source funding from its Chinese partners Shandong Iron and Steel Co Ltd.