Dec 18 (Reuters) - African Minerals Ltd will expand
its existing rail and port infrastructure rather than build a
new port to serve its flagship iron ore mine in Sierra Leone, a
move, the company said, will save it about $1 billion.
African Minerals, which is dealing with a short-term funding
crunch, said it expects total capital expenditure on the revised
expansion plan to be about $2 billion.
"This will significantly reduce capital costs, and de-risk
the project's delivery, whilst at the same time reducing social
and environmental impacts," African Minerals said.
The company on Monday cut its iron ore shipment forecast
from the Tonkolili mine, which sits on one of Africa's largest
iron ore deposits, and said it was in advanced talks to secure
additional working capital requirements.
African Minerals has cut its production forecast twice this
year as shipping was suspended between August and October due to
high moisture levels after unusually heavy rains.
The miner also agreed to raise China Railway Material Group
Co Ltd's ownership limit in the company to 15
percent from 12.5 percent.
Shares in African Minerals rose as much as 7 percent to an
intra-day high of 292 pence on the London Stock Exchange on
Tuesday. They were up 6 percent at 289.75 pence at 1022 GMT.