Nabeba/Mbalam: First production end of 2024, page-60

So who are the major players on this project?

The major players involved in the Mbalam-Nabeba iron ore project are a mix of local and international companies, primarily from China, Australia, Cameroonian and Congolese firms.

Sonamines
The National Mining Corporation of Cameroon, known as Sonamines, has been positioned at the forefront of the project. Sonamines is responsible for forming a consortium to oversee the mining operations, potentially involving multiple Chinese companies REF: BUSINESS IN CAMEROON

Chinese State-Owned Enterprises
Five major Chinese firms are reportedly interested in participating in the exploitation of the Mbalam-Nabeba project. These companies include: -

• Yiantian Port Specializes in port construction and management.
• China Railway Corporation Co. (CRCC) - Involved in railway construction, crucial for the project's rail infrastructure.
• Metallurgical Corporation of China (MCC) - A leader in the construction and operation of metallurgical projects.
• China Baowu Steel Group - One of the largest steel companies globally, focusing on steel production and raw material procurement.
• Shanghai Tsingshan Mineral Co. Ltd - Engages in the extraction and processing of minerals REF: BUSINESS IN CAMEROON

AutSino and Bestway Finance
These firms have a significant role, especially in infrastructure development, including the construction of the railway and the mineral terminal at Kribi port. They are also potential partners in the broader exploitation of the iron ore deposits REF: BUSINESS IN CAMEROON

Sangha Mining
A Congolese state firm controlled by Bestway Finance, Sangha Mining holds the rights to the Nabeba deposit on the Congolese side. They have taken over the assets from Sundance Resources, giving them a crucial stake in the project's development. REF: BUSINESS IN CAMEROON

The collaboration between these entities highlights a complex interplay of local and international interests, with a significant focus on Chinese investment and involvement in the project's development and infrastructure. The project's success will depend on these partnerships and their ability to effectively manage the resources and logistics involved.

Key Developments on the Project

1. Strategic Partnerships and Interest from Chinese Investors

   • In recent months, there has been renewed interest from major Chinese state-owned enterprises such as China Railway Corporation Co. (CRCC), China Baowu Steel Group, and Metallurgical Corporation of China (MCC). These companies are in discussions to form a consortium with local players to invest in the project. This is a positive sign, indicating potential for substantial capital inflow and expertise in developing the necessary infrastructure, such as the 540-kilometer railway and the deep seaport at Kribi
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2. Project Scale and Resource Estimates

   • The Mbalam-Nabeba project has a robust resource base, with an estimated 775 million tonnes of high-grade hematite and a further potential of itabirite deposits, valued at around $40 billion to $50 billion based on current iron ore prices. This makes the project one of the largest undeveloped iron ore resources in the world
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3. Operational Risks and Delays

   • Despite the potential, there are significant operational risks. The project has experienced numerous delays over the years due to geopolitical instability, legal disputes, and logistical challenges. Most recently, there have been concerns about the ability of the Cameroonian and Congolese governments to manage the complexities of cross-border infrastructure development and secure the necessary funding and technical expertise
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4. Infrastructure Development Challenges

   • The project requires extensive infrastructure development, including the construction of a railway and a port terminal. While Chinese firms have shown interest in participating in these developments, there is still uncertainty about the finalization of agreements and the timeline for these critical components. Any delays or complications in infrastructure development could significantly impact the project’s timeline and profitability
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