Tuesday, January 13, 2009

Cameroon Gives Go-ahead For Iron Ore Terminal

The Cameroon government has given the go-ahead for the development of a new $160-million multiuser iron-ore export terminal in Cameroon to serve a new iron-ore province extending through the West African country to neighbouring Congo and Gabon.

The Australian iron-ore company Sundance Resources said on Tuesday that Cameroon Transport Minister Gounoko Haounaye had announced government approval for the proposed new iron-ore terminal south of the town of the coastal town on Kirbi, which would receive, stockpile, reclaim and load high-grade direct shipping ore (DSO) for export. The port site selected allowed for the development of a 22-m deep open-water berth that could receive 250 000 dry-weight-ton ships.

The $160-million cost, which excluded materials-handling infrastructure and utilities, was $50-million less than the prefeasibility study estimate.

Sundance MD Don Lewis said that Sundance's Cameroon subsidiary CamIron SA had been selected as a core operator within the overall port development, after submitting its proposal to the Cameroon government as part of a consortium comprising the financing arms of Rio Tinto Alcan, the Bolloré group, Angelkique/ SCDP, Petredec/Camship, Vinci/Sogea/Satom and Boskalis International.

The ASX-listed Sundance said that the next steps would include the drawing up of a port master plan to accommodate the traffic and operational requirements of each of the selected operators, the awarding of concession agreements, the development of technical documentation, and the arranging of funding, targeted for September 2009.

Sundance said it was developing Cameroon's Mbalam iron-ore project, which was located close to the Belinga iron-ore project in Gabon that was being developed by the China National Machinery and Equipment Import and Export Corporation.

The Mbalam and Belinga projects formed part of an emerging iron-ore province, which extended to the Congo Republic and Gabon.

The latest announcement followed Sundance's signing of a framework agreement, the delineation of a compliant resource base totalling 2,45-billion tons of DSO quality and itabirite hematite.

Lewis said that the involvement of several of the world's leading resources, logistics and construction groups would enhance the ability to secure competitive financing for the development.

Source: Mining Weekly

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