I guess to secure financing, SDL will need Mining permit.
I could see Mbalam Convention to be ratified in the parliament before Mining Permit.
IMO Cam Gov are reluctant to provide Mining Permit if they don't see the company not making progress to actively engage in discussion with JV Partners & Financing processes and committed to completing the DFS. Hopefully it's not the case for SDL.
They don't want to end up like Geovic (US company), the only company so far to have a license to operate in the mining sector in Cameroon, but haven't completed the feasibility studies of proposed development of nickel and cobalt at Nkamouna (target to be completed in Dec this year, refer Geovic article as per below) and Geovic are still in research of project funding.
Hopefully it's not the case for SDL, where GJ has signed: - Mbalam Project MOU with China Harbour Engineering Company (CHEC) and China Rail Africa (CAC) to establish the scope, cost and delivery programme for the proposed bulk materials port at Lolabe, the railway track and rolling stock needed to support Mbalam project in Cameroon & Congo.
Also from the above article, there also mention of a construction of a heliport, I guess it could be a development of an airfield for medical/emergency evacuation.
So things for SDL will be lined up smoothly and share price will be moving significantly whenever following milestones will be reaching by year end:
Articles on Geovic Mining (Cameroon) http://www.camnews24.net/fr/economie/cameroun/8836-cobalt-de-lomie--geovic-cameroun-a-la-recherche-de-financements (French translation)
Written by Daily Changes Tuesday, October 5, 2010
Cobalt Lomie: Geovic Cameroon to research funding
According to the schedule of activities presented to government by the new CEO, this phase will be looped end of June 2011. The Acting Conrad Houser as head of Geovic Cameroon, the only company so far to have a license to operate in the mining sector in Cameroon, only lasted three months. He was replaced as head of the company that will exploit the nickel and cobalt in the borough Nkamouna Lomie by American Philip Mason. This engineer totaling thirty years of experience in mining in countries such as Angola, DRC and South Africa, officially took office as Director General (DG) in Yaounde last Thursday, sidelines of a board of directors of Geovic Cameroon.
To believe the secretary of state for mines, industry, technological development, Fuh Calistus Gentry, who chaired last Thursday a press dinner to mark the arrival of Philip Mason in Cameroon, the new CEO Geovic has already submitted its schedule of activities to the government. According to him, the new boss of Geovic Cameroon is given until next December to complete the feasibility studies of proposed development of nickel and cobalt Nkamouna. Will then follow a period of research funding that will last six months. It will be delivered in the first half of 2011, a period which will begin construction of the mine for its commercial exploitation.
From this point of view, the new CEO of Geovic Cameroon wants cautious. "The construction and production may evolve gradually, making sure that everything is under control and that we support is granted," he says, before noting that "the mine Nkamouna produce mainly cobalt, and will one of the few dedicated mine production of cobalt as a primary product. " Is this the specificity of the cobalt mine Nkamouna and financial benefits that Cameroon could be drawn to the needs of cobalt in various industrial activities, as Calistus Fuh Gentry said those responsible for Geovic Cameroon impatience to see the project Mining Lomie finally started Indeed, the operating license of nickel and cobalt Lomie was awarded to Geovic since 2003.
Seven years later, the exploitation of these minerals has not yet begun. Yet the basement Nkamouna, according to various experts, is full of important caveats. Those detected on a portion of the deposit, Cameroon Tribune revealed in a recent issue on the binding of mining projects in Cameroon, "are currently around 100 million tonnes of ore at 0.2% cobalt , 0.72% nickel and 3.71% manganese. Under the operating agreement, 15% of these minerals will be processed and sold locally in Cameroon. The proposed development of nickel and cobalt Lomie a pilot Geovic Cameroon, a company in which the National Investment Company (SNI) faded 39% of capital requires an initial investment of nearly 418 million dollars, or about 190 billion CFA francs. Mobilization of resources has been severely disrupted by the global financial crisis that rocked the world in 2008.
Following are extracts of Geovic Mining Convention (French translation)
THIS AGREEMENT IS BETWEEN MINING, one hand, The Government of the Republic of Cameroon, hereinafter referred to as "STATE" represented by the Minister for Mines and Geology, and, secondly, The company Geovic Cameroon SA BP 5839 - Douala - Cameroon, a company Cameroon, above - named fter "GEOVIC", represented by its President, together the "Parties". ......
PART ONE: GENERAL PROVISIONS ARTICLE 1 .- OBJECT The present Convention together with its annexes which are integral, fixed rights and obligations of the Parties. It defines the general conditions, legal, financial, fiscal, economic, administrative, customs, social, land and environmental conditions GEOVIC or any other person who GEOVIC come to sell all or part of its rights and obligations under this Convention, proceed with the mining of cobalt, nickel and their related substances whose area of operation stems from the aforementioned research permit. It also covers the facilities and infrastructure necessary for the exercise of GEOVIC activities, as well as all operations of exploitation, processing, loading, transport, storage, and delivery to the sale of minerals and metals. ...
TITLE II: RIGHTS AND OBLIGATIONS OF THE PARTIES ARTICLE 3 .- MUTUAL OBLIGATIONS The State and GEOVIC hereby agree to cooperate to achieve objectives of this Convention. Each Party shall have the obligation to respect commitments, responsibilities and its obligations under this Convention Mining, its Annexes and amendments thereto in accordance with the law and regulations, except for specific provisions relating to simplify and streamline administrative procedures and customs.
SUB-PART I: RIGHTS AND OBLIGATIONS OF GEOVIC ARTICLE 4 .- RIGHT OF ACCESS TO LAND This Convention gives GEOVIC the right to enjoyment of the award land necessary for the accomplishment of the purpose of the Convention. Such land must first be classified to the private domain of the state, according to the law Crown land and in force, the Mining Code and under the conditions specified in Appendix IV concerning the allocation of land tenure.
ARTICLE 5 .- OBLIGATION TO STUDY FEASIBILITY OF PRODUCING The application file for an Exploitation Licence includes the feasibility study conducted in accordance with Articles 16 and 46 of the Mining Code and attached as Appendix II this Convention.
ARTICLE 6 .- OBLIGATION TO COMPLY WITH THE TECHNICAL STANDARDS AND SECURITY FOR THE MANAGEMENT AND ENVIRONMENTAL PROTECTION AND PEOPLE 6.1 GEOVIC undertakes to conduct mining operations, transportation and storage Matter and Minerals on the one hand, in accordance with technical standards and safety international mining industry, the Mining Code and legislation on Cameroon the protection of the environment and populations, and secondly, under conditions laid down in Annex I on "Impact Assessment and Management Plan Environment "pre-approved by the State.
6.2 GEOVIC committed to providing the date of commencement of operations, guarantees necessary for the rehabilitation of the site as provided in the plan environmental management.
6.3 If the mining was at any time be terminated, the Parties shall report to determine if rehabilitation work remains to be done following the initial program. Where appropriate, the security provided for this purpose will be by mutual consent of parties. In the event that the guarantee would be made a bank account, the balance of account will be returned to work after GEOVIC approved by the State under legislation.
ARTICLE 7 .- OBLIGATION TO SUBMIT TO THE MONITORING ADMINISTRATIVE AND TECHNICAL SUPERVISION 7.1 During the exploitation phase GEOVIC be subject to the rules administrative oversight and monitoring safety techniques, standards as well as environmental protection and population under Cameroonian law.
7.2 The State shall designate for this purpose three (3) of its agents, servants or otherwise, responsible to proceed, without prejudice to the operation of GEOVIC all operations monitoring and control, and to attend trials and tests specified below. This personnel, as such, will have access to any work, installations and sites affected by their control. Their mission is to verify the compliance of activities with GEOVIC safety requirements prescribed by the regulations include: (A) to verify twice a year, reports of inspections carried out by GEOVIC and initial the record established for such audits (B) attend at least once a year, or at the intervals of operations if it is greater than one (1) year, controls made by Geovic or on behalf of GEOVIC by others GEOVIC among selected by agencies approved by the State and competent to do the following: - Inspection of the condition of safety valves and protection systems, - Management of corrosion - Inspection and testing ways to fight against fire, - Analysis of the effluent, - Test of pressure vessels, - Quality assurance, - Control of solid waste management, - Other tests and controls agreed to a common Agreement between the Parties.
7.3 In the context of administrative supervision, is required to send GEOVIC Minister for Mines and Geology later than fifteen (15) of each month, copy of lading for each shipment of material carried during the month precedent.
7.4 GEOVIC is otherwise required to submit to the Ministers respectively mines and geology, industry and the environment by 31 March each year a progress report on the previous tax year. This report contain in particular: (A) the quantities and qualities of materials shipped (B) a list of staff GEOVIC by category (C) a list of accidents that resulted in a cessation operations and significant incidents in Environmental Protection, stating the characteristics of these and the measures taken to prevent renewal or to limit the consequences (D) information on major works carried out and actions taken for strengthening security and protection Environment (E) the balance sheet certified by a chartered accountant, (F) the status of implementation of the Management Plan for the Environment under
ARTICLE 8 .- OBLIGATIONS OF RECRUITMENT AND STAFF TRAINING CAMEROON 8.1 Subject to the implementation of the training program mentioned above - after GEOVIC will have the freedom to choose and employ personnel without regard to nationality, and dismiss such staff, according to labor law Cameroon. However, at equal competence, GEOVIC is required to recruit a priority of Cameroonian and undertakes to include in its contracts with its contracting party a similar condition, and a commitment from them to include that condition in their contracts with subcontractors. In the year following the date of commencement of operations, must submit a GEOVIC training program to the State, in order to ensure the academic, technical and professional staff in Cameroon to help engineers, managers, technicians, workers and administrative staff access to all employment-related their skills.
8.2 GEOVIC agrees not to practice any discrimination of any kind whether based on race, sex, religion or nationality, and is committed to include in its contracts with its contractors a similar condition, and a commitment from them include that condition in their contracts with subcontractors.
ARTICLE 9 .- SOCIAL INFRASTRUCTURE GEOVIC undertakes to carry out as part of its operating infrastructure appropriate housing and facilities for medical, educational, sporting and recreational for its employees. GEOVIC may, upon the request of the State, make available facilities neighbors or the public telecommunications facilities, power lines, the water supply and medical facilities, schools, sports and recreation it created, provided that use thereof does not cause any harm.
ARTICLE 10 .- OTHER INFRASTRUCTURE 10.1 Within the framework of this Convention, the Republic of Cameroon grants GEOVIC the right: (A) construct and use their own roads to connect the plant sites, sites operating sites related facilities, social infrastructure or any other facilities on existing roads. Moreover, GEOVIC may also use roads existing in the Republic of Cameroon in accordance with the legislation in force. (B) construct and operate private branch railway to link plant sites, mining sites, sites related facilities, all facilities social infrastructure or other facilities, any future rail line that would built near such sites or facilities. (C) construct, operate and improve other infrastructure such as lines electrical, pipelines, pipes, canals, river ports and runways landing sites for the needs of factory operating sites and locations of facilities Appendices. 10.2 In the event infrastructure other than that approved as part of the This Convention is necessary, GEOVIC may request authorization to this effect of Minister of Mines and Geology will be required to take the relevant decision within a maximum of two (2) months. 10.3 If the State has not responded to the request of GEOVIC within two (2) months from the date of receipt thereof, the agreement of the Republic of Cameroon be assumed.
ARTICLE 11 .- USE OF EQUIPMENT AND MATERIALS PRODUCTS IN CAMEROON AND SERVICES PROVIDED BY LOCAL BUSINESSES GEOVIC, the Contractors and Subcontractors shall, in exercising their activities, freedom to choose their suppliers, and contractors and subcontractors to obtain goods and services of good quality, regardless of nationalities of these. However, priority GEOVIC use equipment and materials available Cameroon and services from companies established in the Republic of Cameroon, provided that their services and equipment are comparable to those of foreign origin report as price, quality, reliability, availability and delivery conditions. GEOVIC agrees to include in its contracts with its contractors a similar condition, and a commitment from them to include this same requirement in their contracts with their subcontractors. ...
All looking good for SDL,
Cheers, BS
SDL Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
