Sundance Resources announced that developing its Mbalam iron ore project would cost $4.6 billion to develop. The project in central West Africa needs infrastructure and the completion of a definitive feasibility study for the initial stage of the project.
The Australian company is developing the Mbalan Project in the Republic of Cameroon. The company hopes to begin operations by 2012 on the 35 million tonnes a year hematite mine. The company is hoping to generate strong cash margins in the project.
The Net Present Value is estimated at over $4 billion for the full project. There is an estimated Internal Rate of Return of 27% on an un-geared basis. The project is still subject to obtaining government approval and securing project financing but Sundance Resources is looking forward to progressing the project to production in a short while.
Giulio Casello, managing director said that the project would bring to fruition more than 3 years of hard work and positions Sundance Resources to realize its vision of becoming a world class iron ore producer. He added that they were now all focused on moving ahead as rapidly as possible to secure the final approvals and obtain project funding to enable them to commence construction later this year.