(Business in Cameroon) - Three major Iron Ore deposits are being evaluated: Mbalam, Nkout, and Kribi. It is said that the potential of these three areas can make Cameroon a major producer of iron in the world.

According to data published by the Australian company, Sundance Resources on June 20, 2012, there are 775.4 million tons of hematite deposits in Mbalam with 57.2% iron. According to the company, 95% of the deposit is classified as “indicated”- a point where an estimate has been made with a reasonable level of confidence in accordance with the Australasian Joint Ore Reserves Committee Code (JORC Code).

Mbalam under negotiation

However, according to data from the Cameroon Ministry in charge of mines, iron reserves of Mbalam mine are estimated at 200 million tons of rich iron and 1.2 billion tons of enriched iron. For a better opinion, the government has secured the services of three firms of international reputation who will also help negotiate the mining agreement with Sundance Resources and the Cameroon Subsidiary, Cam Iron SA. They are BMCE Capital for Central Africa, Patton Boggs and SRK Consulting. The negotiations are underway.

According to the Ministry of Economy, Planning and Development (Minepat), the total project cost is estimated at CFAF 1,650 billion. The same Ministry says that funding is being sought. “Sundance resources is financing the scheme by 80%, CAMIRON, Cameroonian partners - 10% and 10% by the Cameroonian government,” says Minepat.

Nkout deposit under evaluation

Besides Mbalam, there is another iron ore deposit at Nkout, a town about twenty miles away from Djoum, in the South Region of Cameroon. It has the same geological environment as Mbalam, that is to say, it falls on the same iron belt as Gabon and Congo.

Cameroon Mineral Exploration (Caminex), the Cameroon subsidiary of the English group, Affero Mining will operate in this area.

According to Caminex, the iron ore deposit at Nkout is more than Mbalam’s.

To complete the geological studies, the preliminary economic studies, the economic feasibility studies and the final feasibility studies, Administrators of Caminex in December 2011, allocated additional $ 115 million, or about CFAF 8 billion. The total amount of funding for this project is not yet defined.

Kribi Iron

There is a huge iron ore deposit in Mamelles near Kribi. A research permit was granted on March 22, 2008 to SINOSTEEL CAM SA, a subsidiary of Chinese state SINOSTEEL over an area of 978.3 km². Here, 50% of the studies show a potential of 661 million tons with 37% Fe. Total estimates should be known by the end of this year, 2012.