The deals include certain discounted off-take arrangements in respect of iron ore produced at the Tonkolili mine.
SISG will buy 2mtpa of phase one production, an incremental 8mtpa after phase two is commissioned and 10mtpa during phase three, with discounts in each phase ranging from zero to 15%.
AML will use the funds raised to accelerate the expansion and further development of the Tonkolili project and to repay the existing $417m secured loan facility.
Closing of the transaction, which is expected by the end of December 2011, is principally conditional upon receipt of relevant Chinese regulatory approvals.
According to AML, the $1.5bn consideration will be paid upon closing.
