Perth, Australia — MININGREVIEW.COM — 08 November 2010 – Australian-based and listed international iron ore company Sundance Resources Limited “’ which is planning to develop a US$3.4 billion (R23.5 billion) iron ore mine in West Africa “’ has hired Citic Securities Company to help it obtain debt and equity funding for the project.
In a statement issued here, Sundance revealed that Citic “’ China’s largest brokerage “’ would hold talks with several groups interested in investing in the Mbalam mine in Cameroon. “Hiring Citic will help with the vast array of potential Chinese funding options available to the Mbalam project,” the company said.
China “’ the world’s largest buyer of iron ore “’ increased demand to a record last year to produce steel for homes, cars and appliances. The nation’s companies are expanding investments in steelmaking raw materials globally, with Aluminum Corporation of China Limited agreeing in July to pay US$1.35 billion (R9.3 billion) for a stake in the Rio Tinto Group’s giant Simandou iron ore project in Guinea.
Sundance “’ whose board members were killed in a plane crash in the Republic of Congo in June this year “’ aims to complete an initial study for the project by the end of the first quarter of 2011, it said in a regulatory filing last month.
The company has signed agreements with units of China Railway Construction Corporation and China Communications Construction Company Limited to help develop the rail and port requirements for the project, it added.