Shandong Iron & Steel Group in $1.5 Billion Investment in African Minerals' Flagship Iron Ore Project

March 30, 2012

Cleary Gottlieb represented African Minerals Limited in connection with Shandong Iron & Steel Group’s $1.5 billion acquisition of a 25% shareholding in the mine, rail and port and power subsidiaries comprising African Minerals’ flagship Tonkolili iron ore project in Sierra Leone. As part of the transaction, Cleary Gottlieb also advised African Minerals on an off-take arrangement covering the life of the mine under which Shandong will purchase iron ore at a discounted price and retain the option to buy up to 25% of annual iron ore production. The transaction agreements were signed on July 29, 2011, and following the satisfaction of extensive conditions precedent, completion occurred on March 30.

African Minerals is a minerals exploration and development company with significant interests in Sierra Leone. The company is currently focused on the development of the deposit at Tonkolili, which is one of the largest iron ore resources in the world and has a total projected mine life of more than 60 years. The project is also set to become the single largest employer and contributor to GDP in Sierra Leone. African Minerals is listed on the Alternative Investment Market (AIM) of the London Stock Exchange, and is now headquartered in London.

Shandong Iron & Steel Group Co., Ltd is one of the world’s largest iron and steel groups specializing in the smelting, processing and sale of steel and related commodities.