Cameroon Eyes Money from Iron Ore Projects

26 October 2009 (Last Updated October 26th, 2009 18:30)

Cameroon may receive $5bn through dividends, corporate taxes and royalties over 25 years thanks to sales by Sundance Resources, which drills for iron in the eastern part of the country. Cameroon's partner with the Australia-based iron ore firm Cam Iron appealed for a permit from the Ca

Cameroon may receive $5bn through dividends, corporate taxes and royalties over 25 years thanks to sales by Sundance Resources, which drills for iron in the eastern part of the country.

Cameroon's partner with the Australia-based iron ore firm Cam Iron appealed for a permit from the Cameroon Government to commence drilling of iron ore, according to Dow Jones.

Sundance is the 100% owner of Cameroon Iron, which has a 90% stake in the Mbalam iron ore deposit - regarded as one of Africa's biggest deposits.

The appeal follows the completion of a feasibility study at Cam Iron on the $3.3bn Mbalam iron mining project.

According to the report, such revenues will be derived from royalties from the sale of iron ore products, and corporate and stakeholder income taxes.

Other revenue sources include dividends derived from the government's equity stake in Cam Iron, taxes paid by personnel and returns from the set up of a social and environmental sustainability fund.

Production may begin by 2012 and Sundance aspires to annually export about 35 million to 40 million tonnes of iron ore.