Exploitation of Kribi iron

FYI...

More iron ore exploitation in Cameroon, although no need for our rail line!
Being in close proximity to the port of Kribi, they're using a 20km pipeline to move the beneficiated iron ore to the terminal.


Exploitation of Kribi iron: the Chinese Sinosteel projects annual revenues of 22.9 billion FCFA for Cameroon

Friday, 06 May 2022 10:28

(Business in Cameroon) - The State of Cameroon, represented by the Minister of Mines, **riel Dodo Ndoké, and the company Sinosteel Cam SA, a subsidiary of the Chinese mining giant Sinosteel Corporation, signed this May 6, 2022 in Yaoundé, the country's capital, the mining agreement relating to the exploitation of the Lobé iron deposit in Kribi, in the South region. According to this agreement, which defines the rights and obligations of the parties, the exploitation of this reserve of 632 million tonnes of iron with an average content of 33%, should provide the State of Cameroon with annual revenues of 22 .9 billion FCFA, including 4.9 billion FCFA for local communities.

The budget thus projected, which does not take into account " common law taxes and dividends in respect of the 10% free shares of the State " in the operating company (provision of the 2016 Mining Code), learns- on, is mainly made up of revenue from the ad valorem tax (14 billion FCFA, including 3.5 billion FCFA for local communities). It also includes 4.7 billion FCFA annually for the export tax, 2.8 billion FCFA for the 1% of production going to the State under the contract for sharing production, or CFAF 1.4 billion to replenish the special local capacity development account for communities, which was established by the 2016 Mining Code.

In order to be able to provide such income to the State of Cameroon, thanks to this exploitable iron deposit over more than 50 years, we learn, the company Sinosteel Cam SA intends to ensure an annual production of 10 million tons of iron from an average content of 33%. The enrichment of the ore should also make it possible to produce 4 million tons of iron each year with a content of more than 60%, we learn. According to official estimates, the Lobé mining project in Kribi should generate 600 direct jobs and around 1,000 indirect jobs.

Hope for local industry

Faced with the delay in the mining project for the Mbalam iron deposit (East region), torn between Cameroon and the Congo, or the lack of dynamism around the project for mining the Nkout deposit (region from South) ; the effective exploitation of the Lobé iron deposit in Kribi should boost the Cameroonian steel and metallurgy industry, which has been booming for several years. In fact, despite major investments made over the past 10 years, local metallurgists and steelmakers still depend approximately 70% on imports of billets (molten iron waste in the form of ingots and used in the production of reinforcing steel, Ed), due to the scarcity of scrap metal on the local market.

Thanks to the Lobé project in Kribi, these economic operators should benefit from the provision of the 2016 Mining Code, which imposes the local transformation of at least 15% of the mineral substances extracted from the Cameroonian subsoil. In its article 29, the law on the Mining Code in Cameroon also provides that " the State guarantees the availability of the raw material, i.e. a minimum of 50% of its share, to local processing structures of mineral substances from mining. 'artisanal and semi-mechanized artisanal mining '.

Brice R. Mbodiam


Source:
https://www-investiraucameroun-com.translate.goog/mines/0605-17868-exploitation-du-fer-de-kribi-le-chinois-sinosteel-projette-des-revenus-annuels-de-22-9-milliards-fcfa-pour-le-cameroun?_x_tr_sl=fr&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc



"... the lack of dynamism..." ???

And we were reading about how quickly the AustSino/Bestway/Consortium deal was done.