Concerted efforts are on course to mobilise the FCFA 4,350 billion needed for the project.
Sundance Resources Limited, an Australian firm working with Cam Iron to develop the multi billion Mbalam/Nabeba Iron Ore Project in the East Region has now identified a number of potential interested parties and possible structures for the marketing of the project.
According to a release from the Australian firm, Sundance Chief Executive Officer and Managing Director Giulio Casello is quoted to have said that following approval from the Sundance Board of Directors on the business strategy, Sundance is moving forward with a clear plan in place. “We have spent the last few weeks in discussions with potential interested parties, including Steel Mills, iron ore traders and infrastructure providers, in order to test a range of commercial solutions and to determine which would provide the best outcomes in the current market. We have not only received encouraging support for these proposed structures out of China, but also from non-Chinese companies, all of whom believe Mbalam/Nabeba is one of the few and best development ready iron ore greenfield projects currently on the market. We are now moving to building this project.” Casello said.
The Sundance release further indicates that specific commercial structures which could form the basis for funding the development of the project have been identified. These include a joint venture for both the mines and transport infrastructure, as well as a separate joint venture for the mine and an independent infrastructure solution. “Sundance plans to run two concurrent processes, one at the mine level for a joint venture and/or secured take or pay iron ore off take contracts and another for the development of the deep water port and rail infrastructure through EPC contracts or an independent infrastructure consortium,” it notes.
It further states that to support this process in the coming month Sundance will commence a process to elicit responses in these two areas. “Steel Mills, Traders and other iron ore users will be requested to confirm their interest in and provide commercial terms regarding notably the purchased equity at the mine level, purchased equity at the project level (mine joint venture and infrastructure) and secured take or pay iron ore off take contracts,”.
When government signed the mining convention with Cam Iron on November 29, 2012, the company was given 18 months to mobilise the 8.7 billion US dollars (about FCFA 4,350 billion) before it can be served a mining permit to take off real iron ore production. Stakeholders around the project say the executing firm is still within the deadline and is working tooth and nail to get what is needed to mine the iron ore estimated at 35 million tones per annum.
