Cameroon: Australian Sundance Resources does not renounce the iron Mbalam but ...
Financial Afrik
July 7, 2016
By Elisabeth K, Yaounde.
The Director General of the Australian Sundance Resources Group, Giulio Casello, also president of the Board (PCA) of Cam Iron SA, Cameroon subsidiary, recently visited Cameroon.According to the prospectus published by Cam Iron SA, Giulio Casello "came reassure the Prime Minister Head of Government of his company's commitment to develop this important project (Mbalam iron in the Eastern Region, Editor's note). "
The head of mining group came from the Congo, where he performed a similar mission."Sundance has not left the project. We still are part of this fantastic adventure. The project was delayed due to late funding of port and rail infrastructure in Cameroon and also because of the state of the iron ore market is not very suitable for investment at the moment, "said Giulio Casello.
One of the blocks facing the iron mining project Mbalam is the adverse economic breath for two years on the world market for this mineral. After reaching its lowest level in the last decade to 39 dollars per tonne, prices of iron ore have stabilized now beyond US $ 50 / tonne. Or half of the estimated price of iron (over $ 100 / ton) on which the financial model of the project was completed.
According to industry experts, the worst is certainly past, but you have to wait before seeing a considerable improvement courses. To take to the crisis, the group Sundance Resources has implemented a strategy to maintain viable Cameroonian and Congolese subsidiaries. The DG of Australian mining group announced a raising additional funds for the continuing development of the project.
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