It has signed a deal with Noble Resources International to buy the product for 10 years.

Sundance Resources Limited, an Australian firm leading the multi-billion iron ore project in Mbalam (Cameroon) and Nabeba (Congo) has announced that its subsidiaries, Cam Iron and Congo Iron have signed a long-term off-take contract with leading global commodities trader, Noble Resources International. According to the terms of the agreement, Noble will buy all the production for the first 10 years of operation outside that allocated to project equity participants. “Project equity participants can buy up to 50 per cent of the production. Sales will be based on international standard pricing benchmark,” a Sundance release states.

The contract, the release signed by Giulio Casello CEO and Managing Director Sundance Resources Limited notes, will help facilitate completion of debt funding for the construction of the port, rail and mines, infrastructure absolutely needed to take the project off the ground.

“This significant off-take contract further demonstrates Noble’s belief in Sundance and the Mbalam-Nabeba Iron Ore Project in Africa. In addition, Noble has further indicated to Sundance its willingness to assist in getting the project into development as soon as possible,” the release further notes. Giulio Casello said the off-take contract would meet the requirements of financiers and would therefore help ensure the project secured debt funding.

In a chat with Cameroon Tribune yesterday March 25, Cam Iron’s Country Manager, Bruno Pennetier and the CEO, Serge Asso’o, said the contract represents a major step in the project. “It is always a good thing to find a buyer for what you want to sell because so many companies may not have the good product to sell. The blend of Cameroon and Congo product makes it a very demanding one,” Serge Asso’o said. Meanwhile, to Bruno Pennetier, “the contract means we are doing what we said last year that we will be doing, that is signing an off-take contract. This is the first and major step.” Like the release, the two officials confirmed that Sundance continues to make substantial progress on the Engineering, Procurement and Construction (EPC) tender process for development of the port and rail. Sundance is said to be actively engaged with the two preferred parties on the commercial terms of their bids, with the intention that an exclusivity arrangement with the preferred bidder will be finalised in the June Quarter of 2014. Sundance signed the Mbalam Convention with the Cameroon government in November 2012 and was given 18 months to mobilize funding for the project. The Nabeba Mining Permit was awarded by the Congo government in December 2012.

Noble Resources is a wholly owned subsidiary of Noble Group Limited which manages a portfolio of global supply chains covering a range of agricultural and energy products as well as metals, minerals and ores. It is listed in Singapore, with headquarters in Hong Kong and operates from over 140 locations.

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