Name of the Project
Mbalam-Nabeba iron-ore project.

Location
The project is located between Cameroon and the Republic of Congo (RoC).

Client
Sundance holds a majority interest in subsidiaries Cam Iron and Congo Iron, whose principal asset is the Mbalam-Nabeba project.

Project Description
Following the completion of a definitive feasibility study, which was released in 2011, Sundance’s focus was on the development of two mines, a new port and the required rail system to transport the ore from the mine to the port at a rate of 35-million tonnes a year.

The project now comprises the development of an iron-ore mine, processing plant and associated infrastructure – on Exploration Permit 92 held by Cam Iron in the Eastern province of Cameroon (Mbarga); and on the mining permit Nabeba Bamegod, held by Congo Iron, in the Sangha province of the RoC (Nabeba).

The focus is to develop the mines at an increased capacity of 40-million tonnes a year of high-grade hematite for a life-of-mine of about 13 years, and then at least 35-million tonnes of high-quality concentrate for a further 15 years.

The project will use a 540 km rail line dedicated to the transport of iron-ore through Cameroon and a dedicated mineral export terminal designed to receive bulk iron-ore carriers of up to 300 000 t.

The rail and port infrastructure will be financed, built and owned by the government of Cameroon.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

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

Duration
Not stated.

Latest Developments
Sundance Resources has signed a binding memorandum of understanding (MoU) with private Chinese company Tidfore Heavy Equipment Group and Cam Iron – a subsidiary of Sundance that has a mining permit application over the previous EP92 in Cameroon.

The MoU will provide a framework for cooperation between the parties and their joint venture partners to establish the required consortium expertise to fund, or assist in sourcing the funding, the construction and infrastructure of the Mbalam-Nabeba project.

Under the MoU, Sundance will sell 51% of its ownership in Cam Iron to Tidfore for a value to be agreed upon or independently valued, once Cam Iron obtains title to the tenure over the area covered by the previous EP92 for a minimum of three years.

Currently, Cam Iron has a mining permit application lodged over this area. The company reached an agreement with the government of Cameroon in 2017 to initially extend the Mbalam convention by six months to January 26, with a further six-month extension being available if Sundance could show substantial progress on funding the project either by itself or with a credible partner.

Sundance and Tidfore have met with the Cameroon government to outline their proposal for the development of the project, with government yet to determine whether it will grant Sundance a further extension of the convention.

Key Contracts and Suppliers
WorleyParsons (prefeasibility study); Mota-Engil Africa (EPC) and Standard Bank (funding and lead debt arranger).

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.
Mota-Engil Africa communication office, Dr Antonio Capinha, tel +351 214 158 200, fax +351 214 158 700 or email Antonio.capinha@mota-engil.pt.