For what it's worth...
From African Business Magazine 7 February 2017:
New hope for Central African mining
Prior to the commodity price crash,
Central Africa was on track to becoming an important new source of global iron ore supply. The lack of transport capacity has previously held back the exploitation of reserves in **on, Congo-Brazzaville and Cameroon but railways were planned that would bring a new source of export revenue for a region that is overly dependent on oil.
The falls in demand and prices saw development shelved but the 2016 recovery looks like it could put a string of projects back on track. Congo Mining Exploration, an offshoot of Equatorial Resources, has submitted a mining licence for its Badondo iron ore scheme in northwest Congo-Brazzaville and announced plans to invest $1.2bn in a venture that it describes as a “monster”.
Mine development is due to begin this year, with output eventually expected to reach 40m tonnes a year. Congo Mining Exploration’s chief executive, John Welborn, said: “The recent improvement in the price of iron ore makes Equatorial confident that it will find the necessary financing to develop the mine.”
While it should be easier to transport iron ore from the Mayoko-Moussondji project in Congo-Brazzaville, the Belinga, Mbarga and Mbalam Nabeba mines will all require new rail connections. It will be interesting to see how much cooperation there is between mining firms over sharing infrastructure, particularly with regard to cross-border rail links in a remote region.
**onese rail company Société d’Exploitation du Transgabonais (SETRAG) has already secured €85m ($91m) in financing to double capacity on the main railway in the country, the 650km line between Libreville and Franceville. The International Finance Corporation (IFC) has agreed to provide €52.5m and Agence Française de Développement €32.5m.
This could act as the main trunk line for both
iron ore and manganese exports in the region. The IFC’s regional director for West and Central Africa, Vera Songwe, said: “This project will support efficient transport solutions by private sector operators for mining companies and general freight shippers, thus facilitating industrial investment and economic growth in **on.
Australia’s Sundance Resources announced in late November that it had reached agreement with existing bondholders to extend their redemption date in order to continue the development of the Mbalam Nabeba iron ore project in Cameroon.
Managing director Giulio Casello said: “The company has not wavered in its belief that the Mbalam Nabeba iron ore project will be developed and that belief is shared by our note holders, whose ongoing support has been critical. With the extra funding and the stabilisation of the iron ore price, we are heading into a new and improved environment which will support our development strategy.”
Neil Ford
