Linklaters has advised Chinese steel giant Shandong Iron & Steel Group (SISG) on its $1.5 billion acquisition of a quarter of the shares in Sierra Leone’s largest iron ore mine. The mine is owned by AIM-listed African Minerals Limited (AML). AML was represented by Cleary Gottlieb in the deal, which was completed on March 30 this year.

According to the disclosed terms of the transaction, SISG will acquire 25 percent interests in AML’s Tonkolili iron ore project in Sierra Leone, which consists of the iron ore mine and related rail, port and power subsidiaries. Additionally, the SISG will also purchase iron ore at a discounted price throughout the life of the mine, and retain the option to buy up to 25 percent of annual iron ore production.

SISG is one of the world’s largest iron and steel groups, operating smelting, processing and sale of steel and related commodities. The London-headquartered AML has significant minerals exploration and development in Sierra Leone and  runs Tonkolili, one of the world’s largest iron ore resources, with an expected mine life of more than 60 years. It is noteworthy that the Tonkolili project is set to become the largest employer and contributor to the GDP of the African country.

SISG was counseled on the deal by Thomas Ng, Nicola Mayo and Fang Jianfrom Linklaters. Cleary Gottlieb, meanwhile, dispatched partners Mike Preston from Hong Kong, David Billington from London and Joshua Frankel from Sierra Leone and London to assist the seller. ALB

Liu Zhen is North Asia journalist at ALB. Follow her on Twitter: @ALB_Magazine.

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