The fluctuating global iron-ore price will have no bearing at all on the success of iron-ore company Sundance Resources’ Mbalam-Nabeba iron-ore project, in Central Africa, says Sundance Resources MD and CEO Giulio Casello.
“The fluctuations in iron-ore price – past or current – literally have no impact on this single project, as it is in the lowest quartile of iron-ore mines globally,” says Casello.
“Its economics are not affected by movements in the iron-ore price in the current $85- to $120-a-tonne price range we are experiencing,” he adds.
“Significantly, it will also not be impacted by market pressures being brought about by the gradual withdrawal of high cost, lossmaking ore from the market.
This is such a low-cost operation that drops in price do not affect its bottom-line cost structure, and this is why Mbalam-Nabeba will be a secure operation right through to 2029 and beyond,” explains Casello.
The Mbalam-Nabeba iron-ore project straddles the border of Cameroon and the Republic of Congo.
The project involves mining 35-million tonnes a year from iron-ore deposits in both Cameroon and Congo for 35 years, and constructing a 510 km rail line from the Mbarga mine, in Cameroon, and a 70 km rail spur line connecting the Nabeba mine, in Congo, to the Cameroon coast for the transport of iron-ore.
Further, the project includes the construction of a new deep-water iron-ore export terminal at Lolabe, which will be capable of taking bulk iron-ore carriers in sizes of up to 300 000 dead weight tonnage.
Casello says the company is focused on securing all funding for the project in the second half of 2015, with construction due to start in 2016.
He adds that a new $40-million private investment in the company is a significant “show of faith” in the explorer’s African projects.
Global resources investor Gennadiy Bogolyubov has committed $40-million to Sundance through a subscription for convertible notes and options, he reveals.
“This is a significant milestone for us, and a significant show of support by Bogolyubov in our projects,” enthuses Casello.
“Central Africa is emerging as a world-class iron-ore region with a number of significant projects
,” he concludes.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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