Cameroon to build railway to disputed iron ore project with China-linked firms, says state TV

Elife Holdings

25/06/2021 15:29

DOUALA, June 25 (Reuters) - Cameroon signed a deal on Friday
with two China-linked companies to construct a railway from the
coast to a large cross-border iron deposit, the state
broadcaster said, even as it faces legal action over the project
from Australia's Sundance Resources.
    Sundance has filed for international arbitration and
billions of dollars in damages, saying Cameroon and Congo
Republic have violated contracts by developing the
Mbalam-​Nabeba project with Chinese investors.  urn:newsml:reuters.com:*:nL5N2NK3RD
    Cameroon's mines minister and transport minister signed the
memorandum of understanding to construct the rail link from
Mbalam to the southern port of Kribi with representatives of 
Aust-Sino Resources and Bestway Finance, the state broadcaster
CRTV said in a post on Twitter.
    The ministries did not respond to a request for comment.
    Bestway Finance is registered in Hong Kong. Mining company
Aust-Sino is based in Australia, but some of its board members
have close links to China, according to its website.
    Aust-Sino, which was a major backer of Sundance until last
year, did not respond to a request for comment. Bestway could
not be reached. 
    Congo Republic revoked Sundance affiliate Congo Iron's
permit for the Congolese part of the project in December and
awarded it to little known company Sangha Mining Development
Sasu, which is backed by Bestway.  urn:newsml:reuters.com:*:nL1N2J12MT
    Mining has yet to start at Mbalam-​Nabeba, which has an
estimated 775 million tonnes of iron ore. Over 500 kilometres
(310 miles) of rail needs to be built to transport the ore to
the coast. 
    Projects requiring significant infrastructure investment
have become more viable due to a surge in iron ore prices, which
hit a record high in May as a rebound in demand for the key
steel-making ingredient from top consumer China outpaced supply.

 (Reporting by Josiane Kouagheu
Additional reporting and writing by Alessandra Prentice; Editing
by Toby Chopra)
 ((alessandra.prentice@thomsonreuters.com; +380 44 244 9150;
Reuters Messaging: alessandra.prentice.reuters.com@reuters.net))