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London Mining goes into bankruptcy in wake of ire ore price slump and Ebola outbreak

LONDON – Debt-plagued London Mining PLC has filed for bankruptcy protection in the wake of a slump in iron ore prices and as the Ebola outbreak complicated the sale of a mine in Sierra Leone.

The company said Thursday that a lack of liquidity, together with lengthy negotiations between potential buyers of its Sierra Leone Marampa mine, forced it to file for administration.

The company says it hopes the mine will continue to operate, “although at this time this is not confirmed.”

BlackRock World Mining Trust co-manager Catherine Raw was quoted by mining.com as saying London Mining was hit by a confluence of events that happened quickly. She noted iron ore prices are down 40 per cent on the year and that the Ebola crisis hampered the company’s efforts to find investors.