Cam Iron the Cameroon subsidiary of the Australian based Sundance Resources Limited that carried out exploration of iron ore deposits in the country's east region has been awarded a mining agreement prior to the final stage in the mining of reserves at a rate of 35 million tonne per annum.
The agreement was signed here between Cameroon minister of mines, industries and technological development Emmanuel Bonde and Sundance Resources CEO and Cam Iron chairman Mr Giulio Losello.
The ceremony was chaired by the representative of the PM, Mr Louis Paul Motaze who is the secretary eneral at the PM's Office and also steering committee chairperson of the project. Officials of Sundance Resources also signed an enterprise collective agreement with the ministers of labor and social security, Grégoire Owona and of employment and vocational training, Zacharie Perevet.
In terms of the agreement, Cam Iron and Sundance Resources have 18 months to mobilize the project finances to the tune of over USD 8.7 billion before it is awarded a mining permit. Mobilization of the USD 5 billion dollars needed for the first phase of the project will begin immediately. The second phase of the project which will need USD 4.9 billion dollars will begin 12 years after the mining operation.
Cam Iron said that the Mbalam iron ore project will produce 35 million tonne per annum of iron ore and generate royalties to the tune of USD 600 billion in 25 years. Cam Iron will construct a 510 kilometer rail line for the transportation of iron ore from the Mbarga mine to the Cameroon coast, with a 70 kilometer rail spur line to connect to the Nabeba Mine in Congo.
It will also build a deep water iron ore export terminal in Lolabe to Kribi capable of taking bulk China Max iron ore carriers.
Mr David Meehan project director said that "Once the finances are available, we will be ready to go full speed ahead, build the railway, develop the mines and build the port. We expect to have that completed by the end of 2016 so that we can export iron ore for the benefit of the people and government of Cameroon and my company by the start of 2017."
