Name and Location
Mbalam-Nabeba iron-ore project, between Cameroon and the Republic of Congo (RoC).

Client
Sundance Resources.

Project Description
Mbalam-Nabeba has total Joint Ore Reserves Committee-compliant global high-grade hematite resources of 775.4-million tonnes at 57.2% iron, of which 748.0-million tonnes are classified as indicated. These mineral resources include reserves of 436.3-million tonnes at 62.6% iron.

The project further boasts 4.05-billion tonnes of itabirite hematite resources at 36.3% iron, with 1.43-billion tonnes at 38% iron classified as indicated resources.

The project scope will be to mine 35-million tonnes a year from iron deposits in Cameroon and the RoC and to construct a 510 km rail line from the Mbarga mine, in Cameroon, and a 70 km rail spur line, connecting the Nabeba mine, in the RoC. The rail line/spur will transport iron-ore to the Cameroon coast.

The scope will also include construction of a new deep-water iron-ore export terminal at Kribi, which will accommodate bulk iron-ore carriers of 300 000 deadweight tons in size.

The project will be completed in phases, with Stage 1 focusing on a direct shipping ore (DSO) project for a minimum of ten years and Stage 2 extending the life of the operation by more than 15 years for the production of high-grade itabirite hematite concentrate.

Stage 1’s mineral reserves currently total 436.3-million tonnes at 62.6% iron.

Value
A capital expenditure of $4.6-billion will be required to start up the DSO operation.

Duration
Construction is planned for late 2014, with a targeted first iron-ore shipment planned for the last quarter of the same year.

Latest Developments
Sundance has issued tender documents relating to the financing and construction of the infrastructure for the Mbalam-Nabeba project.

Tender documents for the project’s port and rail infrastructure are being provided for several international engineering, procurement and construction contractors that have proven records in building successful projects of large scope and scale. Six of these groups are Chinese.

Sundance will also issue term sheets for project equity and take-or-pay contracts on iron-ore produced at Mbalam-Nabeba.  The company envisages that the negotiations for the take-or-pay contracts and project equity agreements will be completed this year.

Key Contracts and Suppliers
WorleyParsons (prefeasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Sundance Resources, tel +61 8 9220 2300, fax +61 8 9220 2309 or email info@sundanceresources.com.au.