Sundance says delays Cameroon iron ore mine startup
By Tansa Musa YAOUNDE, Oct 13 (Reuters) - Australia mining firm Sundance Resources Ltd (SDL.AX) said Tuesday the global economic slowdown has forced it to delay its target for initial production at its Mbalam iron ore project in Cameroon by two years to 2013.
"This revised timeline largely reflects the impact of the global financial crisis which seriously impacted iron ore markets, particularly in Europe and North America, and the availability of project finance in 2009," company CEO Don Lewis told Reuters.
"We are seeing these issues starting to abate with confidence returning to markets, particularly commodities markets driven by Asian demand such as iron ore," he said.
Sundance submitted a feasibility study on the project to the Cameroonian government last week, projecting the Central African country would receive some $5 billion in royalties, taxes, and dividends during the 25-year life of the mine.
The Mbalam project, southeast of Yaounde near the Belinga mine in Gabon, holds an estimated 2.5 billion tonnes of high grade hematite and itabirite hematite. Sundance hopes to produce some 35 million tonnes per year.
"Iron ore market fundamentals appear likely to remain strong in the medium to long term fuelled by growth in demand, particularly from China, and limited large-scale supply options outside the current major producers," Lewis said.
He added Sundance was still negotiating fiscal terms of the project with Cameroon's government.
SDL Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
