(Business in Cameroon) - The Australian mining company Sundance Resources, promoting the project to operate on the Mbalam-Nabela iron deposit, spread between Cameroon and Congo, announced on 13 January 2016 having been informed of the indefinite postponement of the signing of the contract for the construction of infrastructure (railroad of 500km and ore terminal of the deep water Kribi Port) linked to this mining project.

This contract, we learn, should have been signed in December 2015 between the State of Cameroon, who decided to regain control over this aspect of the project after Sundance failed to raise the funding by end June 2015; and a Chinese public company, whose name has not yet been revealed, even though some trusted sources are talking about China Ghezouba Group.

According to Sundance, even though it is still interested in this project, the Chinese counterpart asked for the signing to be deferred, while waiting "for market conditions to improve and the fundraising process to be more advanced". The Australian company, which indicated the signing of the contract as a prerequisite for raising funds for the construction of the mine, indicated that "it is currently assessing the impact of the postponement on the project, and will inform its shareholders once the assessment is concluded".

The Mbalam-Nabela iron project is entering a new period of uncertainty. Indeed, in the current situation with the general decrease in the prices for raw materials on the international market, including for iron ore, it is difficult to predict when the price of this ore will increase again. But, this hypothetical upturn seems to be the prerequisite condition given by the Chinese company with which the State is negotiating the financing of the infrastructure in the Mbalam project, before any contract signing.

Brice R. Mbodiam