Sundance Resources chairman George Jones has predicted an 8 to 10 per cent increase in iron ore prices in 2008, which would help to attract support for the company's $3.1 billion Mbalam iron ore project in west Africa.Mr Jones, who also chairs aspiring Mid West iron ore miner Gindalbie Metals, was speaking at Sundance's extraordinary general meeting today.The meeting approved a $30 million capital raising, which will allow Sundance to accelerate its pre-feasibility study and exploration program.Mr Jones said he joined Sundance last year because of "the potential quality and scale" of the Mbalam project, located in the Republic of Cameroon in west Africa.He believes the strength of the global iron ore market augurs well for the company."I expect iron ore prices to again increase in 2008, probably by around 8 - 10%, on the strength of the continuing and growing demand for high quality iron ore from China and other Asian and European markets," Mr Jones said.The Mbalam project requires extensive infrastructure, including power and water to the mine site, construction of a 490 km rail link to port storage and export facilities, and development of a new port facility on the southern coast of Cameroon."Indicative capital cost estimates for the project are in the range of US$2,460 million (A$3.1 billion) for the establishment of a long-term operation producing 35 million tonnes pa of direct ship hematite," he said. The company's announcement is pasted below: SUNDANCE ACCELERATES WEST AFRICAN IRON ORE PROJECT AFTER COMPLETING $30M PLACEMENTSHAREHOLDER APPROVAL RECEIVED FOR SECOND TRANCHE OF $30M PLACEMENT
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