27th August 2013
PERTH (miningweekly.com) – Iron-ore developer Sundance Resources has issued term sheets for the sale of equity and take-or-pay offtake agreements for its Mbalam-Nabeba iron-ore project, in the Cameroon and the Republic of Congo.
MD Guilio Casello said on Tuesday that the company aimed to have agreements in place by the end of 2013, to facilitate the full production capacity of 35-million tonnes a year of iron-ore, and to finalise negotiations for building the infrastructure.
Earlier this month< Sundance issued tender documents relating to the financing and construction of the port and rail infrastructure for the Mbalam-Nabeba project, and contractors were given six weeks to clarify their desired involvement.
Rail and port construction was expected to start immediately after the successful completion of the engineering, procurement and construction tender process, which would include funding solutions, Casello said.
He noted that Sundance has held discussions with all the parties that would receive the tender documents, and was encouraged by the strong interest received so far.
The Mbalam-Nabeba project has a total Joint Ore Reserves Committee compliant hematite resource of 436.3-million tonnes, at 62.2% iron, and an itabirite hematite resource of 4.05-billiontonnes, grading 36.3% iron.
Stage One of the project would involve mining some 35-million tonnes a year of direct shipping ore, over a minimum period of ten years.
All the environmental approvals for the mine and associated infrastructure has been awarded.
Edited by: Creamer Media Reporter