By Silvia Antonioli London (Reuters) - African Minerals said on Friday its Chinese partner in its sole asset, the Tonkolili iron ore project in Sierra Leone, has taken on some of its multi-million dollar debt and is demanding repayment. The loan is secured against certain assets of the borrower and by taking ownership of the debt, Shandong is in a position that could allow it to take control of the project. "The borrowers and guarantors do not have sufficient funds available to make the payment demanded," African Minerals said in a statement on Friday. A group of banks including Standard Chartered and Citi, had lent African Minerals $250 million as pre-export finance (PXF), and have transferred their interest to Shandong Steel Hong Kong Zengli Limited, a subsidiary of Shandong Iron and Steel Group, which owns a quarter of the Tonkolili project. The loan, which has an outstanding amount of $166.7 million has been in default since November and Shandong wants immediate repayment, London-listed African Minerals said. The company, which owns 75 percent of Tonkolili, has been battered by higher costs related to the Ebola outbreak in West Africa and a rout in iron ore prices in the last year. It was forced to shut down its operation in Sierra Leone in late November for lack of working capital after failing to agree with Shandong on the release of funds that were previously earmarked for the next phase of expansion of Tonkolili. Shares in the company have been suspended since Nov. 20 due to uncertainty about the company's future. Shandong has obtained an interim injunction in Sierra Leone restraining African Minerals from unilaterally taking any steps that will lead to the dissolution, liquidation, winding up or placing into administration of any of its companies. African Minerals said it would "seek clarification of Shandong's intentions in relation to the PXF facility and the repayment demand."