Sundance Resources has completed the definitive feasibility study (DFS) for stage one, and the pre-feasibility study (PFS) for stage two of Mbalam iron ore project in Cameroon and the Congo.

The Mbalam iron ore project will consist of a port, railway, mine and processing plant in Cameroon, and a second mine, processing plant and 60km spur rail line in Congo.

According to the studies, the estimated net present value for the total project is about $4bn.

The DFS for stage one was based on a forecast average production rate of 35Mtpa of direct shipping ore (DSO) averaging 63.6% iron.

The capital expenditure for stage one will cost about $4.6bn and the cash operating costs and pre-royalties will cost $21.20 a ton.

The PFS for stage two was completed based on continued production of 35Mtpa of Itabirite hematite concentrate product at 66% iron.

The firm expects the first production from stage one in the last quarter of 2014.