Afferro rejects Jindal as offer falls short for iron ore project

AFRICAN-focused Afferro Mining yesterday said discussions had ended with Indian Jindal Steel and Power, on the basis that the New Delhi-based company undervalued Afferro’s assets.

Junior stock market-listed Afferro said that the indicative offer from Jindal “fundamentally undervalued the company’s high quality, strategically located portfolio of iron ore projects in Cameroon and its strong balance sheet, with approximately $90m (£57m) cash”.

Afferro – which owns three iron ore projects in Cameroon – confirmed it was still in talks with International Mining and Infrastructure Corporation (IMIC), as well as a number of potential strategic partners.

It is understood to be talking to IMIC regarding a sale of the entire share capital, and with a number of others regarding a partnership to develop the Nkout iron ore project in the Cameroon.

“Whilst the company has received approaches from a number of interested parties, there can be no certainty that a formal offer will be forthcoming,” Afferro added in a statement yesterday.

It first announced it was in discussions regarding a sale in December.