Posted on 10 May 2022
Sinosteel Cam S.A., a subsidiary of China’s Sinosteel Group, on 6 May signed a mining agreement with Cameroon’s Ministry of Mines, Industry and Technological Development for the Lobé Iron Ore Project, Kallanish learns.
The government of Cameroon will grant a mining license to Sinosteel Cam, and the latter expects to invest more than $700 million in the project.
The main works include an iron ore beneficiation plant, a pipeline of some 20 kilometres to transport products, a power plant of at least 60mWh, and a mineral terminal to ship products to international markets, according to Sinosteel.
The deposit in Kribi, South Cameroon has about 632.8 million tonnes of iron ore reserves. Sinosteel plans to mine 10m t/year of ore at 33% Fe, and process them into 4.17m t/y of iron ore concentrate containing over 60% Fe for a lifetime of over 50 years.
Sinosteel Cam S.A. also estimates that at least 600 direct jobs and more than 1,000 indirect jobs will be created through the project. However, a follow-up timeline for the project has not been announced.
The above work will be carried out together with China’s domestic strategic partners, said Sinosteel. In the long run, the company intends to promote feasibility studies of projects such as pellet and direct reduced iron (DRI).
The Lobé Iron Ore Project, also known as Mamelles, was discovered in 1953. Sinosteel holds a 97.5% stake in the mine, with the remining 3.5% stake being held by Cameroun African Minerals. Project advancement has been plagued by weak local infrastructure and huge investment requirements.
Sinosteel also controls the Midwest Magnetite Project in Australia, which has the potential to ship 15m t/y of iron after commissioning. The firm inked a binding memorandum of understanding with FMG in January to complete a rapid project assessment (see Kallanish 25 January).
Source:Kallanish
