Page 20 - Sundance Resources Ltd Annual Report 2013

18 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
The decision to call for tenders and issue
term sheets has the full support of the
Cameroon Government and the Republic
of Congo Government.
Mining Infrastructure
Programmes of work were developed, for both
Mbarga and Nabeba, for the geotechnical investigation
and sterilisation drilling for the mine infrastructure and
waste dumps. In July 2012, the Cameroon Minister of
Forests authorised the construction of access tracks
for the sterilisation drilling program to be undertaken,
but execution of this work has been temporarily put
on hold.
Contract packages for construction of the mine
infrastructure will be issued to prospective bidders
during the second half of 2013.
To facilitate provision of finance for the Project,
Sundance will carry out a sintering test work program
in an independent facility on ore samples representing
the first five years of production from the combined
output from Mbalam and Nabeba during the year
ahead. Customer samples of the same composition
as the sinter samples will also be made available
to allow interested parties to carry out their own
test work.
Offtake / Equity Agreements
Term sheets were issued in August 2013 for the
sale of equity and take or pay iron ore off-take
agreements in relation to the Mbalam-Nabeba Iron
Ore Project. The Company is aiming to have finalised
equity and off-take negotiations to facilitate the full
production capacity of 35 million tonnes per annum
of high‐grade iron ore from the Mbarga and Nabeba
mines by the end of the 2013 calendar year.
Declaration of Land for Public
Utility (DUP) – Mbalam Rail Corridor
On 23 November, 2011, Sundance announced that
Cameroon Ministry of Property and Land Tenure had
declared the land for the Project rail corridor as Land
for Public Utility (DUP). The DUP covers the corridor
from the Mbalam mine site to the planned Lolabe
iron ore mineral export terminal located several
kilometres south of the Kribi multi-user port area.
This DUP ensures all land required for the
construction of the rail, mineral terminal and mine
in Cameroon is either subject to a Declaration of
Public Utility or a Mining Permit application. It is a
major step towards securing all land leases required
prior to commencing construction.
The DUP is implemented through a formal process
led by a committee appointed by representatives
of each of the five affected regional divisions in
collaboration with the Company. It will involve detailed
mapping and the marking of the rail corridor between
the mine and port sites, delineating all required
land required for building the railway line.
An assessment and evaluation of land tenure,
properties, and agricultural land and forestry
concessions will follow the survey works. The
committee will submit a final report to the Ministry
of Property and Land Tenure, which will determine the
required levels of expropriation and compensation.
The DUP process commenced during the year
with planning of all field work and consultation with
local communities and government authorities.
The implementation of field work has been postponed
pending finalisation of the rail and port infrastructure
tender process and is anticipated to be completed
in 2014. Upon completion, an expropriation and
compensation decree issued by the Prime
Minister’s office will enable construction of the
railway to begin.
Project Director & Chief Operating
Officer, David Meehan, alongside
NED Robin Marshall on a recent
site vist.