September 11, 2013 / 6:32 AM / 4 years ago

African Minerals cuts output guidance

LONDON, Sept 11 (Reuters) - Sierra Leone-focused iron ore miner African Minerals cut its production guidance for the year and announced compensation worth over $50 million to a Chinese partner for failing to meet 2012 targets.

The miner said production at its flagship Tonkolili mine in the third quarter had suffered due to major maintenance and operational issues, forcing the company to reduce its forecasts to 11-13 million tonnes from 13-15 million tonnes for this year.

African Minerals said it had agreed to pay Shandong Iron & Steel Group compensation for not fulfilling offtake agreements and targets set for 2012. The net charge to the group’s 2013 accounts will be $56.2 million.

The company posted revenue of $405 million in the first half, with core profit (EBITDA) of $99 million.

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