Cameroon is gearing up for the construction of a railway line that will connect its coast to a significant iron ore deposit located on its border with the Congo Republic. Despite facing a lawsuit from Australia's Sundance Resources, the country has agreed to collaborate with two China-affiliated businesses to build the railway and advance the Mbalam-Nabeba project. The project has been the subject of controversy due to allegations of breached contracts and billions of dollars in damages sought by Sundance through international arbitration.
In a recent meeting with mining officials in the Congo, Cameroon's interim mines minister, Fuh Calistus Gentry, announced that construction for the railway linking the Nabeba deposit to the southern port city of Kribi will commence at the end of August. The minister expressed optimism, stating, "Together we can demonstrate to the world the maturity of our two peoples to ensure that the Cameroon-Congo mining family lives on."
Furthermore, the minister revealed that Cameroon has identified 12 new mining projects, with five of them scheduled to begin this year. However, specific details regarding these projects were not provided during the announcement.
In 2021, Cameroon entered into an agreement with Aust-Sino Resources and Bestway Finance to construct a 500 km (310 miles) rail link capable of transporting 35 million tonnes of high-grade iron ore annually for a decade. Bestway Finance, based in Hong Kong, is involved in the project alongside Aust-Sino, whose website indicates close connections to China despite being headquartered in Australia. Notably, mining operations have not yet commenced in the Mbalam-Nabeba area, which is estimated to contain 775 million tonnes of iron ore resources.
In the Congolese portion of the project, the Congo Republic revoked the license held by Sundance subsidiary Congo Iron in December 2020 and awarded it to Sangha Mining Development Sasu, an obscure company financed by Bestway.
The construction of the railway line and the development of the Mbalam-Nabeba project represent significant strides for Cameroon's mining sector. The new infrastructure will facilitate the transportation of iron ore, a valuable resource, from the deposit to the coast, boosting the country's export potential and potentially driving economic growth. However, the legal disputes surrounding the project emphasize the importance of ensuring transparency, adherence to contracts, and fair business practices to maintain the confidence of international investors.
As construction is set to begin in August, it remains to be seen how the collaboration between Cameroon, the Congo Republic, and their Chinese partners will unfold. The successful implementation of the project has the potential to transform the mining landscape in the region, create employment opportunities, and contribute to the economic development of both countries.