one day to go!!!, page-72

Guys,

I just sucked this one in from my Live data news feed off MA Pro,

The numbers don't seem to add up IF the Capacity Target is 21-M tons off Nabemba (Nameeba???) and they only would spend $600-M to develop - that's a Cheap $28.58 per ton capacity CAPEX - if my simple arithmetic serves me right..... Is there anyone there got a scientific calculator??? Can you pls correct this number???

I thought they were saying around the $99 to $100/ton capacity....

The news release is as follows: (Copy & Pasted totally)



* Nabemba to come online in 2014, export through Cameroon

* Output seen at 21 million tonnes per year

* Project one of main sources for Mbalam export venture



BRAZZAVILLE, March 30 (Reuters) - Australian mining company

Sundance Resources will spend $600 million to develop

its Nabemba iron ore mine in northwest Congo Republic, the head

of Sundance's local unit said on Wednesday.

The Nabemba mine, which is expected to start producing in

2014, will have a capacity of 21 million tonnes per year and a

lifespan of about a decade, with output to be shipped via rail

to Cameroon's Kribi port for export overseas.

The project will be one of the two main sources of iron ore

for Sundance's mammoth Mbalam iron ore export venture, with the

other source near Congo's border in Cameroon.

"The production of iron ore from Nabemba (...) will

transform Congo into one of the biggest iron ore exporters in

the world, and we expect to invest nearly $600 million in this

project," Andre Baya, head of Sundance unit Congo Iron, told a

news conference.

Sundance holds an 85 percent stake in the Nabemba project,

with the rest held by Congolese investors and the state.

Preliminary studies have identified some 210 million tonnes of

probable reserves at Nabemba.

The deposit will be linked by rail with Sundance's iron ore

concession across the border in Cameroon, which is expected to

come on line in 2013.

Last month, Sundance said it expected the Mbalam project's

overall costs to rise beyond an initial $3.4 billion estimate

due to development of the Nabemba mine. Its managing director

used an estimate of $4 billion in an interview with Reuters last

week. [ID:nL3E7EO1NF]

The entire Mbalam project is expected to yield 35 million

tonnes per year for ten years, followed by a second phase of

production of itabirite concentrate products. according to the

company's web site.

Sundance is seeking a deal with Chinese companies to help

build the railway line and deep sea port in Cameroon vital to

exporting the iron ore from the venture.

(Reporting by Christian Tsoumou; editing by Richard

Valdmanis and Jane Baird)

(([email protected]; Dakar newsroom +221

33 864 5076))

((For more Reuters Africa coverage and to have your say on the

top issues, visit: http://af.reuters.com/))



Keywords: SUNDANCE IRON/CONGO