Reuters reported that 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,will save it about USD 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 USD 2 billion.
It said that"This will significantly reduce capital costs and de risk the project's delivery,whilst at the same time reducing social and environmental impacts."
The company recently 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.
Source–Reuters
