Further Update: 1. EPC contract was Scheduled to be signed on...

Further Update:

1. EPC contract was Scheduled to be signed on 6th January.
2. But before this date, January 4 Specifically, the Chinese partners have requested "additional time.
3. "The month of December, the chairman of Sundance Resources, came to meet the Prime Minister, Head of Government, to inform him in person voice Sundance Resources has no intention to leave or close.  He wishes to develop this project with the Government of Cameroon.

Full Article:
Cameroon - Iron Mbalam: Waiting for funding ...

• Sun, January 31, 2016 0:55:22 +0100

Tagged under
sundance resources ,  , Raoul kouakam , high-Nyong , cam iron , Mbalam iron ,


With falling prices, Cam Iron dismissed 92% of its staff.  The remaining staff is reduced to monitoring equipment on site pending the return of the upturn.
On the operating site Mbalam iron in the Upper Nyong, Eastern Region, visitors are welcomed, this January 19, 2016, by a flat calm.  From near and far, no deafening noise of a machine is not noticeable.  It is not the great excitement.  And besides, at the checkpoint, located at the crossroads Ntam, on the border with Congo, instead of the regulars may find that the guard, recruited to filter the entries and exits, is no longer in office.  "This is the minimum service that is provided here," said Banla Collins, the manager-site.  237online.com Cam Iron, the Cameroon subsidiary of Australian company Sundance Resources, responsible for operating the iron ore to reduce its spending, starting with its workforce.  "From about 80 employees initially, they remain only six active at Mbalam," we learn.  These workers are solely responsible for ensuring the maintenance of equipment.  A situation

which also resulted in the reduction of support usually provided to local populations.

unfavorable conditions
In reality, this structuring project which the State holds experiencing enormous difficulties for its commissioning.  Tuesday, January 19, the Minister of Economy, Planning and Regional Development (Minepat), Louis-Paul Motaze, revealed during a press lunch in Yaounde that "This is the 10 July 2015 that the Australian company has admitted its inability to raise funds to start the operation of the mine. "  237online.com The latter is located on both sides of the border between Cameroon and Congo.  Two thirds of the project's iron stores are located on the line Nabeba in Congo.  Now this is from June 5, 2014 an agreement signed with the State of Cameroon gave mandate to Sundance Resources in nine months to complete the financing of this project which cost 3900 billion F. Meanwhile, falling prices of raw materials and minerals also hit the iron.  As the Minepat entrusted to the press, the financial closing was good progress has been hampered with falling prices of iron on the international market.  "This is a very important project that suffers from the situation.  If it evolves positively, it will change much since the project must participate in industrialization.  The partner selected for the transformation is already known, "then confided Louis Paul Motaze.

The price of iron down
At the time of negotiations, a tonne of iron ore still was close to 100 dollars.  But in March 2015, the price per tonne is already trading at just 50 dollars.  Or half of the forecast.  In December 2015, iron prices now totaled 39.6 dollars (less than 2400F, for a dollar equivalent to 600F) per tonne.  A decrease of 14.2% on month and down 42.4% year on year.  Reason given by specialists, "the abundance of supply and slowing demand from China."  237online.com result for Cameroon, or precisely Mbalam in the East, the pace of work is declining.  In the basic life of Cam Iron, like around, no activity itself is not performed.  "The phenomenon is observed for several months now, almost two years," according to Raoul Kouakam, loaded Cam Iron relations with the government of Cameroon.  It serves as a guide on the website, January 19, 2016 during the visit of the Governor of the East, Gregory Mvongo.  "For now, the company Cam Iron did everything not to close its infrastructure as many multinationals have done elsewhere.  But she was forced to cut spending.  A statement has also been released to the Australian Stock Exchange, January 18, 2016 stating that Cam Iron announced a reduction of its expenses by about 80%, "says Raoul Kouakam, while trying reassuring.  If it is true that the global crisis underway affects Cam Iron, it does not mean talk of closing shop.  Far from it.  "Cam Iron has not announced the closure", explained our source, noting that "the month of December, the chairman of Sundance Resources, came to meet the Prime Minister, Head of Government, to inform him in person voice Sundance Resources has no intention to leave or close.  237online.com He wishes to develop this project with the Government of Cameroon.  For now, we're there.  Sundance Resources and Cam Iron are indeed on this site primarily for maintenance, "reiterates Raoul Kouakam.

launch postponed
Faced with the impasse is this structuring project whose realization could serve as a catalyst for growth, the government is now in the forefront of the negotiations.  Last December in Sandton, South Africa, during the summit of the Forum on China Africa, many advances have been made.  Raoul Kouakam of Cam Iron This was confirmed when he says that "at the moment, Cameroon is negotiating a contract with a Chinese partner, the company CGG (China Gezhouba Group Company) to build and finance the project infrastructure operating Mbalam iron. "  A contract with the Chinese partner to be signed on 6 January.  237online.com But before this date, January 4 Specifically, the Chinese partners have requested "additional time.  Why we did not, as expected, started the great communication from the beginning of January to say that we left, "says Raoul Kouakam.  This focal point of Cam Iron rest moreover optimistic about the exploitation of this deposit, as it notes that after the crisis that is currently observed in the iron ore deposit in the world, things will flare " very soon ".

MESSI BALA and Pierre CHEMETE,
special envoys to Mbalam