Ed Mason, head of Asia Equities Products at Renaissance Capital,...

Ed Mason, head of Asia Equities Products at Renaissance Capital, said a new bid shouldn't be ruled out, but it would be well below what Hanlong was offering.

"The [West African] region remains strategically appealing in our opinion given the scale and grade of the iron ore deposits present," Mr Mason said. He thinks a group of West African producers, including Sundance, could add volumes equivalent to half the production in Australia's Pilbara region currently and at half the cost.

Mr Mason doesn't view the collapse of the Hanlong-Sundance deal as a reflection of waning interest from China to invest in strategic projects.

"Both Cameroon and the Republic of Congo are seen as important strategic partners of China, and China continues to provide assistance in funds, technology and specialised personnel to expand bilateral trade and investment cooperation," he said.

Mr Mason pointed to the construction and funding of the Lom-Pangar dam under the direction of China International Water & Electric Corp, the construction of the Kribi deep water port by China Harbour Engineering Company, the construction of the Memve'ele hydroelectric dam by Sinohydro. All of these projects are being built in Cameroon.

In the Republic of Congo, Renaissance Capital said China Machinery Engineering Corporation has been involved in the construction of the Imboulou hydropower station, Giri water plant, and OBO northern highways. More recently, Chinese president Xi Jinping signed off on projects including the construction of a river port in Oyo, the home town of Congo president Denis Sassou N'Guesso.