Sundance Resources operator increases Mbalam iron deposit production

The Australian operator Sundance Resources, which operates the iron deposit-Mbalam Nabeba between eastern Cameroon and Congo, just revised from 35 million to 40 million tons of ore grade annually that could be drawn from the site on a 35-year period.

Its last activity report, which date March 2015 and whose APA has obtained a copy, re-evaluation based on a dynamic simulation, more sophisticated, made a few months ago, and "confirmed that the rated capacity can be increased with the addition of a loop that goes together with an additional rail spur, with capital cost of $ 10 million."

With this new deal, Sundance Resources estimates that its revenues should increase by around 295 million dollars annually.

In early June 2014, the Cameroonian government and the Australian company signed three concession agreements and a contract to design and construction of infrastructure on the implementation of the mine, the construction of a railway line of 510 km and 70 Other kilometers between the Congolese mine Nabeba and the Cameroonian railway.

These agreements also cover the construction of a mineral terminal at the port of Kribi (south) where production will be evacuated; all infrastructures to be undertaken by the Portuguese company Mota Engil.

Cam Iron, the local subsidiary of Sundance Resources, at the same time had a contract with Standard Bank of South Africa, in charge of raising funds for the realization of the infrastructure whose overall budget is estimated at FCFA 3900 billion.