assurances

Sundance Assures Cameroon It Will Continue Iron Ore Project Without China's Hanlong
By Emmanuel Tumanjong
358 words
12 April 2013
18:24
Dow Jones Global Equities News
DJI
English
(c) 2013 Dow Jones & Company, Inc.
YAOUNDE, Cameroon--The chief executive of Australia's Sundance Resources Ltd. (SDL.AU) assured the Cameroon government Friday it will continue with its iron ore project in the West African nation, despite the collapse of talks with China's Hanlong Group.

The company's managing director and CEO, Giulio Casello, made the assurance after holding talks with Cameroon's Premier Philemon Yang.

Sundance Resources will continue discussions with other Chinese construction companies to ensure the continuous funding of the project, after the withdrawal of Hanlong Mining.

Casello saw no impediment to the project's calendar, saying resource estimates of the project further strengthen its confidence and viability.

"Of course, everybody is disappointed about Hanlong, because that would have been the quickest done. But everybody can look back with pride on the work done. Everyone is looking forward and everybody is looking with optimism about the future."

Sundance shares plunged below half their value after the Sichuan mining firm said Monday that the US$1.43 billion takeover wouldn't proceed because the Chinese investment group had missed key deadlines to finance the deal.

Sundance had signed an 18-month memorandum of understanding in November 2012, spelling out the implementation of the project.

According to Mr. Casselo, agreements in the convention will be respected and this will be discussed during a board meeting Sundance will be holding next week in the French capital, Paris.

Premier Yang who underscored the importance of the project, expressed hope for Sundance's commitment to respect the timeframe of last November's convention.

The Mbalam-Nebada iron ore project is an integrated mine, rail and seaport operation project in Cameroon and neighboring Congo-Brazzaville, which could unlock the potential of a new world class iron ore production region in the poverty-ridden Central African subregion. It could generate substantial economic benefits in both countries in the long run and create thousands of direct and indirect jobs.

Write to Emmanuel Tmanjong at [email protected]