The Portuguese company Mota Engil was selected to carry out all the infrastructure of this project, the horizon emerges a little more for the realization of this major project.
After the breaking of the initially projected business relationship between Sundance Resources and the Chinese group Hanlong Mining, which occurred in April 2013, this page was completely turned last Thursday in Yaounde. With the signatures of several conventions port and rail concessions. In particular, the "corrected" agreement between the Minister of Mines, Industry and Technology Development and CamIron duo the Australian mining junior, Sundance Resources, the concession agreement of ore terminal by the Minister of Public Works and the President of Complex industrial port of Kribi, the railway concession agreement by the Minister of Public Works and Transport Minister, and finally the EPC contract (Port and rail infrastructure) between Cam Iron / Sundance and Mota Engil.
At the end of the ceremony chaired by the Cameroonian Prime Minister Philemon Yang, all players were unanimous on the fact that it is a boost to has been given to this development project of the iron-Mbalam Nabeba. This particularly that these agreements and leases have a specific schedule of activities leading up to the beginning of the operation of the iron from the beginning of 2019.
Calendar
According to information gathered from the Prime Minister's office, staffed Louis Paul Motazé (Secretary General of these services, and President of the Strategic Council negotiation and monitoring of structural mining projects), which led the negotiations since February 2012, the timetable for completion of this project provides for Mbalam update of its definitive feasibility study. This must be done in six months from the date of signature of the Mbalam convention; followed by the closure of the assembly Financial 12 months after the signing of the EPC contract for construction of infrastructure.
The start of preliminary work on sites meanwhile being provided at the end of this year. Subsequently, in 2015, the work of the construction of the mine will start and construction of railway infrastructure and port, ending in 2019, the start of operations.
But by then, Cam Iron / Sundance and the government, says one, will have to tackle the negotiation and conclusion of other legal instruments enforcement Mbalam convention. In particular, the conservation covenant of the Forestry Unit of (FMU 10034) granted to Cam Iron, the instrument of approval as legislative achievements of the Mbalam convention, the bilateral agreement Cameroon-Congo border transportation of minerals. The company Mota Engil and Standard Bank of South Africa, adopted by Mota Engil to mobilize the necessary funding for this project will have to do their "due diligence" to refine the financial structuring of the project. But also, it will agree to a timetable optimistic effective mobilization of funds at the start of work on the site. This financial close, says one should take between six and nine months, as of June 5, 2014, the date of the signing of the port concession agreements and rail and EPC contract.
Hydroelectric power plant
The project Mbalam that experts cite as one of the largest greenfield projects iron ore in Africa and in the world, after the Simandou in Guinea Conakry, is the production and operation of approximately 35 million tons of iron, of which 13 million tons for Cameroon and 22 million tonnes for the Congo, during the 25 early years. It provides for the operation of MBARGA iron deposits on the area where Cam Iron licensed research. Which induces the extraction and transformation iron ore, the construction of processing plants and enrichment, and that the infrastructure necessary for the production of high-grade iron ore for export. This will require the construction of a central hydro-power of 350 MW on the Dja River. There is also the construction of rail infrastructure to transport the iron ore from the mine to the storage areas, and facilities dedicated to export by maritime. And finally, the construction of a mineral terminal in the complex area industrial port of Kribi, to facilitate the export of seaborne product.
Institutionally, the project will require the creation of three companies charge of three main activities of the Integrated Mbalam project are: Mineco mining, RailCo for the railway business, and PortCo for activity port. CamIron shall also, without charge, return to the state 100% rail and port infrastructure at the end of the concession period of 25 year old. The overall cost of the project is estimated at 000 billion FCFA 3. This is the Standard Bank of South Africa was chosen to mobilize financing. The first bank Africa, with a market capitalization of $ 23 billion, or about FCFA 11,500 billion is related to Sundance Resources by convention.
According to Serge Yanic Nana financial advice of the Cameroon government in the draft Mbalam and also "lead advisor" of Cameroon, "the cumulative state revenues in 25-year average will be 300 billion CFA francs with a little less income 10
early years (Phase I) and many more in- come the last 15 years (Phase II) ". These financial gains will come from dividends for 15% shareholdings, royalties of 2.5% of the sold iron, the corporate income tax, various taxes,ground rent, the revenue of rail transport services, revenue port services, etc.
Apart from these direct state revenue, it also announces spillovers Job Project Mbalam. They are estimated to be between 10 000 and 12 000 during the phase of construction and approximately 2,000 employees during the operational phase, priority being reserved to nationals. And a succession plan for the "Cameroonization" positions work, 50% of managers, 05 years after the start of operations, with a target of 60% the 7th year. 60% of supervisors, 03 years after the start of operations, with a target of 75% for the 7th year, 85% of unskilled workers, 03 years after the start of the exploitation, etc.
Published in association with The Economic Daily
Author: Blaise Nnang
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