Chinese-Australian company AustSino has announced that it has signed a memorandum of understanding (MoU) with the government of Cameroon and Hong Kong-based Bestway Finance to construct a railway linking the Mbalam iron ore mine and Port Kribi both in Cameroon, after the company’s former joint-venture partner Australia-based Sundance Resources’ license to develop the project was canceled.
The port infrastructure has the capacity to transport, handle and process approximately 100 million mt of iron ore per year.
According to the company’s statement, upon termination of the company’s placement agreement with Sundance Resources Limited, the board undertook a review of its West Africa strategy. During the review period, the government of the Republic of Congo had cancelled mining permits and rights previously held by a number of Australian companies, including Sundance Resources Limited, Equatorial Resources Limited and Core Mining Congo.