Iron ore mining company London Mining plc has entered administration after failing to secure a buyer.
The company, which suspended trading on AIM last week, operates the Marampa Mine in Sierra Leone and employs 1,400 people.
London Mining has also been involved in efforts to fight the outbreak of the Ebola virus in Sierra Leone, helping to build a treatment centre.
Administrators have confirmed they are seeking a sale of the business as a going concern and said “advanced discussions” have taken place with “several potential bidders”.
Russell Downs and Peter Dickens of PwC were appointed as joint administrators to the company yesterday (16 October).
Downs, partner at PwC said: “The collapse in iron ore prices and the resulting impacts on this business have been very dramatic.
“Our focus is to ensure that a buyer is found for the Marampa Mine operations given it is such an important part of the Sierra Leone economy.
“We are liaising with key stakeholders and asking for a short window of forbearance as we look to conclude a transaction.”