a new sentiment, page-9

Nothing new........ Cheers DPH

Africa rich with mineral resources, projects prosper

By: Sheila Barradas
4th November 2011


Africa is a source of various mineral resources, most of which have yet to be exploited. As a result, the con- tinent has attracted the attention of inter- national mining companies that seek to take advantage of this abundant wealth.

CENTRAL AFRICA
Mbalam iron-ore project, between Cameroon and the Republic of Congo
A definitive feasibility study (DFS) on Sundance Resources’ Mbalam iron-ore project has confirmed the economic viability of the project. The Mbalam project boasts a high-grade hematite resource of 521.7- million tons, grading 60.7% iron and a further 2.3-billion tons of itabirite hematite resource at 38% iron. Based on an average production rate of 35-million tons a year of direct shipping ore (DSO) averaging 63.6% iron, a capital expenditure of $4.6-billion will be required to start up the DSO operation, with capital payback projected to be achieved in three years.
Sundance has also released a prefeasibility study for the Stage 2 development, based on a continued production rate of 35-million tons of itabirite hematite concentrate product at 66% iron. A DFS on this part of the project will take place during 2012, leading to the mining of the wider itabirite hematite resource.
Project cost: $4.6-billion. This is an increase from the previous development cost estimate of $3.36-billion outlined in the prefeasibility study, released in September 2009.