The railway is planned to be built from Mbalam to the southern port of Kribi
Mbalam-Nabeba deposit is estimated to contain 775 million tonnes of iron ore. (Credit: Bishnu Sarangi from Pixabay)
Cameroon has signed a memorandum of understanding (MoU) with China-linked companies to construct a railway from the coast to the Mbalam-Nabeba iron ore project.
The MoU has been signed by Cameroon’s mines minister and transport minister with representatives of Aust-Sino Resources and Hong Kong-registered Bestway Finance, Reuters reported, citing the state broadcaster CRTV.
Estimated to contain 775 million tonnes of iron ore, the project includes the development of iron ore deposits in Cameroon and the Democratic Republic of the Congo, West Africa.
The railway is planned to be built from Mbalam to the southern port of Kribi. It is estimated to have a length of 500km.
Aust-Sino is a mining company based in Australia, with some of its board members holding close links to China.
The MoU has been signed despite a launch of international arbitration by Australia’s Sundance Resources over the project.
In June, the company referred its dispute with Cameroon to arbitration at the International Chamber of Commerce (ICC) in Paris.
The dispute is related to Cameroon’s failure to implement the exploitation permit that was deemed to have been awarded to Sundance’s subsidiary, Cam Iron in 2010.
Sundance Resources has sought billions of dollars in damages, saying that Cameroon and Congo Republic have acted against the contracts by partnering with Chinese investors to develop the Mbalam-Nabeba project, Reuters reported.
In December last year, Congo Republic cancelled Sundance affiliate Congo Iron’s permit for the Congolese part of the project.
The permit was awarded to Bestway-backed Sangha Mining Development Sasu.