YAOUNDE, Cameroon (Dow Jones)--Construction of Cameroon's giant XAF500 billion deep seaport on the coastal town of Kribi has been halted as a result of a sit-in strike by displaced inhabitants demanding compensation and relocation, independent daily Le Jour reported Tuesday.
The sit-in action began two weeks ago and no resolution appears to be in sight.
The deep seaport in Kribi is important for the shipment of Cameroon's iron ore, alumina and other minerals. Metal producers operating in the country include Rio Tinto Alcan, Geovic Mining Corp. (GMC.T) of the U.S., Australia's Sundance Resources Ltd. (SDL.AU) and conglomerate Cameroon Alumina Ltd.
The Cameroonian government had said it was ready to pay out XAF24 billion to those affected by the construction, but only XAF4 billion has been distributed so far, according to a senior official at the ministry of Economy, Planning and Regional Development, which is overseeing the port project.
"There are some administrative constraints to get the remainder of the financing for compensation, which will also facilitate the relocation," the official told Dow Jones Newswires Tuesday.
In addition, the protesters are also demanding that locals are given jobs in the project.
In January Cameroon signed a deal with Eximbank of China for a loan of $423 million to fund the project.
-By Emmanuel Tumanjong, contributing to Dow Jones Newswires; +237-9655-6261; [email protected]
Anyone concerned about this?
SDL Price at posting:
43.5¢ Sentiment: LT Buy Disclosure: Held
