New Minister of Mines and Mineral Resources, Rado Yokie has terminated the contract of Africa Mineral now Shandong Steel-subsidiary of Tonkolili Iron Ore (SL) Limited and African Railway and Port Services (SL) Ltd.
A letter dated 3 June and signed by the Minister of Mines revealed that the mining licenses of the company has been cancel and the agreements terminated.
That the company has not paid their annual license fees and lease rents since August last year and that at the same time, they have failed to make royalty payment for April 2018 shipment.
That they have failed to provide details on phase 2 of the Mine Development Plan including information on the geology ,mining operation, processing and rail mining lease and Railway and Port Lease Agreements.
“For the said breaches and other pertinent information which have become available to us, we are left with no option but to cancel the mining licenses and terminates the lease agreement between GoSL and ARPS with immediate effect,” the minister maintained.
He continued that the cancellation of these licences and the APRS lease agreement is without prejudice to the obligation of TIOL and APRS pursuant to the licences and lease agreement prior to the date.