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Indian steel major JSW is likely to buy a stake in West African iron ore miner London Mining
A source familiar with this deal said that JSW has been engaged in talks with London Mining for several months, and officials from both companies have even met.
If the deal goes through, JSW is set to meet the rising demand for iron ore. A report from Reuters stated that the company plans to import 10mn tonnes of iron ore this fiscal year ending 31 March 2015.
According to The Economic Times, the UK mining company London Mining is debt-ridden. In addition, the outbreak of Ebola has also affected the company. London Mining owns 100 per cent of the Marampa mine in Sierra Leone, which is expected to produce five million tonnes of iron ore in its first phase of production. Reuters added that London Mining’s shares dropped 96 per cent in 2014 and does not have enough funds to operate the Marampa mine.<
London Mining is among several junior mines that have been set up in West Africa to meet the demand for iron ore globally and aiming to turn the region into a new production frontier to compete with Australia and Brazil, the company said.