Embattled West African iron-ore miner London Mining Plc said on Thursday that its board had decided to place the company into administration.
The company, which owns the Marampa mine in Sierra Leone, has been battling high costs, a sharp drop in iron prices and the impact of the Ebola virus on operations in West Africa.
"The board and management will be working with the administrator of London Mining Plc to maintain the Marampa mine as a going concern, although at this time this is not confirmed," the miner said in a statement.
London Mining warned in late September that it did not have enough cash to operate its only mine and that it was in talks about a potential "strategic investment".
However, it said last Friday that the only potential investors left in the strategic process were unlikely to let the company continue as a going concern. It did not name the potential investors.
Trading in London Mining shares were suspended last week at the request of the company.
SourcE: Reuters
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.