West African-focused miner Sundance Resources has signed an agreement with CRCC China-Africa Construction to study the company's rail needs at Sundance's Mbalam Project.
West African-focused miner Sundance Resources has signed an agreement with CRCC China-Africa Construction to study the company's rail needs at Sundance's Mbalam Project.
Under the terms of the Memorandum of Understanding Sundance and CAC will work together to establish the scope, cost and delivery program for the railway track and rolling stock needed to support output of 35 mega tonnes year of iron ore from the mines at Cameroon and Congo.
Once the investigation is completed both companies may enter into a Delivery Contract for the Mine Rail Project.
Sundance Chairman George Jones said the MoU was a key milestone.
"I'm delighted to have reached this agreement with CAC," he said.
"Their depth of experience and strong presence in the region and the vast resources of their parent corporation, China Railway Construction Corporation Limited, give us great confidence in the outcome.
"I understand that our colleagues at CAC already have a team of more than 30 people underway on this task."
See company statement below:
CRCC China-Africa Construction Limited ("CAC") and Sundance Resources Ltd ("Sundance") are pleased to announce that they have entered into a Memorandum of Understanding ("MOU") to establish the scope, cost and delivery programme for the railway track and rolling stock needed to support Sundance's Mbalam Project in Cameroon and Congo, West Africa.
The MOU was signed for CAC by its Chairman, Mr. Chen Xiaoxing and for Sundance by Board Chairman, Mr. George Jones.
The MOU's key agreement binds the Parties to work together to establish:
Scope, cost and programme for delivery of track and rolling stock sufficient to support planned output of 35m.t.p.a. of iron ore from Sundance's proposed Cameroon and Congo Mines ("Mine Rail Project"); and
Terms of EPC Contract under which CAC would deliver the Mine Rail Project.
At the conclusion of that work the Parties may enter into a Delivery Contract for the Mine Rail Project. Neither Party is bound to enter into the Delivery Contract if it is not prudent to do so.
The MOU recognizes that the Mine Rail Project will be integral with the Mine Project itself and the Lolabe Port Development Project.
The MOU also recognizes that the Rail, Mine and Port Projects are subject to a range of conditions precedent including government approvals, funding and title requirements for the rail corridor and other assets.
Sundance Chairman, Mr. George Jones, said:
"This is a key milestone for the Mbalam Project. I'm delighted to have reached this agreement with CAC. Their depth of experience and strong presence in the region and the vast resources of their parent corporation, China Railway Construction Corporation Limited, give us great confidence in the outcome. I understand that our colleagues at CAC already have a team of more than 30 people underway on this task."
CAC Chairman, Mr. Chen Xiaoxing, Said:
"We are glad to reach this agreement with Sundance and will bring all our experience and technology to this project. Our highly-skilled engineers, artisans, financial experts and construction specialists will work on this project."
CRCC China-Africa Construction Limited was established earlier this year to consolidate the activities of its parent, China Railway Construction Corporation Limited ("CRCC") in Africa. CRCC's engagement with Africa now spans over four decades.
