London Mining decided to place the company into administration
Time:Fri, 17 Oct 2014 01:52:28 +0800
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Embattled West African iron-ore miner London Mining 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 to maintain the Marampa mine as a going concern," the miner said in a statement.
PricewaterhouseCoopers, London Mining's administrator, said its focus was to ensure that a buyer was found for Marampa.
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.
