African Minerals said that it was in talks with several large Asian industrial firms, including Kazahk miner ENRC, over a possible takeover or funding for its Tonkolili iron ore mine.

Mr Alan Watling CEO of African Minerals said that "The discussions that we have had up until recently have been around ENRC taking a position."

ENRC could buy up to 29.9% of African Minerals before being forced to make a full takeover under Aim rules. It has also attracted interest elsewhere and is keen to find investors to help fund its flagship USD 2.7 billion Tonkolili iron ore project in Sierra Leone, which it bills as the world’s third largest magnetite iron ore resource.

Mr Felix Vulis CEO of ENRC declined to comment that ENRC may make an offer for the company saying he could not comment on speculation.