You might be correct Westcott when you say "Something is going on to hold the projects back".
See translated article below, particularly the underlined paragraph:
Faced with the hesitations of China Gezhouba, Cameroon and Sundance are looking for alternative investors for the Mbalam Iron - Ecofin Agency by Brice R. Mbodiam 22/08/17
(Agence Ecofin) - Announced for signature in December 2015, and postponed to a later date, the partnership agreement with China Gezhouba, for the construction of the infrastructure (railway of more than 500 km and mineral terminal Of the deep water port of Kribi) linked to the project to exploit the iron ore deposit of Mbalam, straddling Cameroon and the Congo, is still waiting more than a year and a half later.
The hopes of seeing this convention signed seem even to finally vanish. This is at least what the report of activity at the end of June 2017 of the Australian mining junior Sundance Resources, the developer of this project to allow the exploitation of this iron deposit of a potential officially estimated at 40 million Of tonnes.
Indeed, given the reluctance of China Gezhouba, who, after prior agreement with the Cameroonian state, now invokes the bad economic situation around the world prices of iron ore so as not to engage in this project, Sundance Resources reveals in the Report that it now accompanies the government in the search for alternative investors, including among Chinese companies. And that discussions with these potential new partners have continued since the beginning of this 3rd quarter of 2017.
This move by the Australian mining junior can be explained by the pressure placed on this mining group by the Cameroonian government, which is responsible for finding financing for the construction of the mine.
Indeed, confess Sundance officials in their activity report in the first half of 2017, although they have extended the agreement of this Australian mining group on the Mbalam project until January 26, 2018, the government of Cameroon Last extension over a further six months (June 2018), to the fact that "Sundance could justify significant progress on the financing of the Mbalam iron ore project either by itself or with a credible partner" .
In short, after several years of development of this mining project, to which investors have not yet come, the State of Cameroon (which is itself struggling to find investors for the construction of infrastructure linked to the project) gives to Sundance Resources until June 2018 to find partners to build the mine, or to withdraw from the project, if not.
A situation that might not displease China Gezhouba who, according to sources close to the file, would have discreetly entrusted the Cameroonian authorities his wish to position himself alone on this mining project (possibly with other Chinese partners), not in partnership with the initial developer that is the Australian mining group.
As a reminder, faced with the inability of Sundance Resources to mobilize all the financing needed to start the exploitation of the iron ore deposit of Mbalam, the Cameroon government has committed, as of June 2015, to find itself The financing for the construction of the Mbalam-Kribi railway (between CFAF 1,000 and 1,500 billion, according to official assessments), and on the other hand, from the mineral terminal at the Kribi deep-water port ( About 450 billion CFA francs), which will allow the export of iron from the Mbalam deposit. Only the financing for the construction of the mine remains in the specifications of Sundance.
Expand
