Mbalam's project marks a decisive turning point.The Mbalam mining project in Cameroon and Nabeba in Congo marks an important turning point in its implementation after the award on August 17, 2022 of the exploitation permit for the Mbalam iron deposit to the Cameroon Mining Company (CMC) Sarl , a subsidiary of Coconut Logic Holdings which also controls Bestway Finance. In a press release published on November 29, Aust-Sino Resources, Bestway's partner in the project, announced that it had signed a memorandum of understanding (MoU) with the Chinese CCC Mining Group Limited (CCCM). The agreement thus signed aims at the construction of the 540 km long railway line to link Cameroon to Congo, including 510 km on the Cameroonian side to connect from Mbalam to Lolabe where the ore terminal at the port of Kribi will be built. The construction of an ore terminal on the same port infrastructure with the capacity to transport, receive and process 125 million tons of iron ore per year will be carried out just after. The overall cost of the project amounts to 10 billion dollars, or 5800 billion CFA francs, including 400 million dollars dedicated solely to the processing infrastructure.
These developments come at a time when Sundance Resources, which dismissed the project, multiplies legal action. It should be recalled that Sundance accuses the Cameroonian State of refusing to implement the operating permit granted to its subsidiary Cam Iron in 2010 to develop the Mbalam iron project. The Australian mining junior is claiming, within the framework of these negotiations, damages amounting to the sum of 225 million Australian dollars in Cameroon, or approximately 94.4 billion FCFA.
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Moreover, Aust-Sino Resources Group Limited and Bestway Finance Limited announce the start of exploitation of the 3 iron deposits of Mbalam-Nabeba from 2024. 20,000 direct and indirect jobs are expected from the project.
