Sundance seeking China partner for $4.7bn iron ore project

Perth-based Sundance Resources (SDL.ASX) is seeking to develop a US$4.7 billion iron ore mine, port and railroad project in West Africa with Chinese help, Bloomberg reported. The project is a mine called Mbalam that straddles the border of Cameroon and the Republic of Congo. It is expected to produce 35 million metric tons of iron ore per year by 2014, supported by a 510-kilometer heavy haulage railroad line through Cameroon and a deep-water port for bulk carriers. Preliminary accords have already been signed with China Harbour Engineering and China Rail Construction Corp (1186.HK, 601186.SH) to study building the port and rail components. Guilio Casello, chief executive officer of Sundance, said that the partner would “buy into the project level” and also be allowed to sign up for sales accords, but that Sundance will retain no less than 50% of Mbalam. He said a number of groups have already visited the site and he expects a final investment decision by September. Sundance’s largest shareholder is Sichuan Hanlong Group, which owns a 17.94% stake.