The Permanent Secretary in MINIMIDT told reporters at a press briefing in Yaounde on Thursday April 27, 2012.
The Permanent Secretary in the Ministry of Industries, Mines and Technological Development, MINIMIDT, Ebang Mve Urbain Noël has disclosed that the 500-km railway line to be constructed from the Mbalam Iron Ore mines in the Upper Nyong Division of the East Region will be accompanied by a road of the same distance that will run across five divisions right to the sea terminal in Kribi in the South Region.
Speaking to journalists in his office in Yaounde on Thursday April 27, 2012, Urbain Noël said the National Mining Code obliges mining companies to invest in social infrastructure to improve the standards of living of local population. To this end, he said government has hired the services of advisors to assist in negotiating the terms of the mining lease with Cam Iron Ltd which he described as the first of its kind in Cameroon. It is for this reason that the lease is being carefully developed to avoid problems or disagreements in future, Urbain Noël pointed out
In preparation for the start of construction of the railway line that will help in transporting the iron ore from the mines to the seaport for export, the Secretary General said details of the eventual location of the line, displacement of people and payment of their compensation were being worked out in association with relevant government ministries.
The money for paying the compensation would not be a problem, he said, assuring that the whole process could take about six months. The construction of the rail line itself is expected to last about four years and to cost between US $ 3 billion and US $ 4 billion (about FCFA 1,484 billion and FCFA 1,979 billion). Work on the rail line will be completed before mining proper begins, the Permanent Secretary pointed out.
It was gathered that the mining agreement could be signed this August. Officials of the mining company, Cam Iron Ltd, its partners and government on April 27 in Yaounde signed a joint statement, committing to the key terms of the mining agreement that is being worked out.
The vast iron ore reserves in Southeast Cameroon are known to extend to neighbouring Congo Brazzaville and Gabon, but ore from all the mines will be exported through Cameroon's Deep Seaport in Kribi.
