UPDATE 1-Iron-ore miner London Mining says to enter administration

Written By Unknown on Jumat, 17 Oktober 2014 | 16.48

Thu Oct 16, 2014 1:31pm EDT

Oct 16 (Reuters) - 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," 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. (Reporting by Roshni Menon in Bangalore; Additional reporting by Richa Naidu; Editing by Savio D'Souza)


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