Signing of Mbalam Convention paves way for one of largest, most complex infrastructure projects ever undertaken on African continent
Washington, D.C., December 10, 2012 — The Government of the Republic of Cameroon (“the Government”) has moved one step closer to launching the Mbalam Iron Ore Project (“Mbalam Project” or “the Project”), one of the largest and most complex infrastructure projects ever undertaken on the African continent, with the November 29 signing of the Mbalam Convention by Cam Iron S.A. (the Cameroonian subsidiary of Sundance Resources Limited (ASX: SDL)) and the Government. This integrated mine-rail-port project also will include many social, financial, employment and training benefits for the citizens of Cameroon and will be a major driver for future growth and development in the country and the Central Africa region.
The international law firm of Patton Boggs LLP is the Legal Advisor to the Government with respect to the approximately US$10 billion Mbalam Project. The Project is comprised of two iron ore mines – one in Cameroon and one in Congo (Brazzaville), an enrichment facility at the Cameroon mine site that will extend the life of the mine, a 510-kilometer trans-national railway, and a dedicated deep-water terminal on Cameroon’s coast. Because the ore deposit straddles the border between Cameroon and Congo, the Project also includes an additional 70-kilometer cross-border rail spur.
The Mbalam Convention sets forth the legal and financial terms and conditions for the development and management of the Project. Patton Boggs advised the Government in negotiating the Mbalam Convention and continues to counsel the Government on the numerous and broad range of legal matters that are required to make the Project operational, including those relating to project finance, commercial finance, infrastructure, mine construction and operations, labor and employment, environmental compliance and remediation, social and community development, and transportation.