further credence to the reuters report, page-20

For those that cannot access the link here is the article...It looks like this was a documented interview


David Meehan, "Sundance Resources will invest $ 200 million to build a road in Cameroon"


David Meehan, "Sundance Resources will invest $ 200 million to build a road in Cameroon"

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Friday, May 31, 2013 5:27


Tags: Iron



Agency (Ecofin) - On the sidelines of the International Conference on Mining in Cameroon (Cimec) which opened in Yaounde last Wednesday, May 29, 2013, the Ecofin agency met David Meehan, operations director of Sundance Resources Limited and Chief Operating iron-Mbalam Nabeba project. It focuses on operating Mbalam iron as its pilot Cameroon subsidiary Cam Iron SA project. According to the mining agreement signed in November 2012, the total investment required, the Mbalam Nabeba project is $ 8.7 billion. With this amount, Cam Iron SA, the Cameroon subsidiary of Sundance Resources, will operate on an area of 783 km2, 200 billion tons of iron, 150 billion tonnes of rich ore. Cameroon Ministry of Mines says the Cameroon receive royalties of about 6000 billion FCFA paid by Sundance on the 25 years of operation.

Agency Ecofin: After the abandonment of negotiations for the acquisition of Sundance Resources Limited by the Chinese company Hanlong Africa, where are you with the search for another partner for the development of iron mining project Mbalam Nabeda-Cameroon and Congo?

David Meehan: We are absolutely convinced that we will have other partners. For several reasons. The main reason is that it is a very good project in terms of quality and quantity of iron. This is a great project because we finished all the studies, it is a good project because we have concluded with the Cameroonian government several agreements and conventions. In addition, this is the most viable in the Central African sub-region operating commercially iron project. For those who want to invest in mining projects, our project is the best in Central Africa.

AE: Apparently among potential Chinese partners are still Chinese companies. Is that correct?

DM: The Chinese government will support another Chinese partner, but we are talking to other potential partners in China, but also outside China to find what will be best for us, and for Cameroon the project. We work hard for it and we have the full support of the Government of Cameroon. We will soon have the name of our future partner.

AE: With Chinese companies which you discuss?

DM: We're talking to companies specializing in iron and steel, with Chinese banks and financing with Chinese construction companies. I can not tell you who will be the final partner. At this stage, the discussions are confidential. When we have sufficiently advanced with discussions, we will invite the Cameroonian Minister Louis Paul Motazé China and the Government of Cameroon will be involved in the final choice of partner.

AE: You've invited Mr. Louis Paul Motazé?

DM: We invited them to come to China when we have made ??sufficient progress in the work.

AE: It will be when?

DM: Probably in August or July. I do not know exactly. It is not yet finalized. There is no doubt about it, there are people who want to partner with us in China, Europe and the Middle East. We are looking for the best partner for us, for the project and for Cameroon.

AE: In the Middle East who are potential partners?

DM: In the Middle East, it is much more financial partners who are interested. No companies specializing in steel and iron mining. Even fewer construction companies. I do not want to name names now. We have confidential clauses with those with whom we are discussing. We work with many partners and it is very early to name right now.

AE: When do you conclude these discussions with your potential partners?

DM: We'll probably finish the discussions in June 2013 and so we have a shortlist. Three months later, we will know who will be the final partner.

AE: You've got the mining agreement, have you completed all the requirements requested by Cameroon to grant you the license?

DM: Yes. We have met all the requirements requested by the Cameroonian mining code for an operating license.

AE: The Cameroonian people are concerned that the railway will be built to transport iron to the port at Kribi will not be available for the transport of local populations, but only for the transport of iron to be operated Mbalam. Why have finally decided to build a road along the railway instead of allowing passenger trains on the railway to be built?

DM: People need to understand that the trains carrying minerals are very different from those that carry people. Put together on a railway trains carrying minerals and trains carrying passengers is not safe. We are a company that refuses to do what is not safe and will not endanger the lives of Cameroonians. If you go anywhere in the world where you find large farms ore, there are simple ways for passengers iron and railways minerals. What we have proposed the Cameroonian government is to build a paved along the railway route and put a public transport bus available to people who want to travel. We signed a legal commitment on this issue with the Government of Cameroon. We can not put the lives of Cameroonian citizens in danger by allowing them to travel on the railway because it is not secure.

AE: How do you invest this way?

DM: We plan to invest 200 million U.S. dollars for the construction of this road.

AE: And finally, how much will cost the railroad as to him?

DM: The railway will cost three (3) billion U.S. dollars.

AE: And this is the partner you want to also fund it ...

DM: Right.

AE: Many Cameroonians, including local residents Mbalam which will be operated iron, waiting in vain for the realization of this project for decades. The fact that your potential partner Hanlong has thrown in the towel a few months ago has reinforced the pessimism of some. What assurances do you give to people for this project?

DM: This project will be carried out absolutely.

AE: How do you justify this optimism?

DM: We have signed numerous engagements with the Cameroon government. And we have already spent $ 300 million for the development of this project. We are not going to abandon this project. If we were not involved, we'd already gone and we do not have much invested in this project. And we continue to invest four million U.S. dollars each month. We are in Cameroon to implement this project.