Chinas Sinosteel signs $680 million iron ore mine deal with Cameroon

　　div classBodysc17zpet90 cdBBJodivpBy Amindeh Blaise Atabongp

　　pYAOUNDE Reuters – Cameroons government has signed a 420 billion CFA franc 675.96 million highgrade iron ore mining deal with a subsidiary of Sinosteel Corporation Limited, as China seeks new sources of the steelmaking ingredient. pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pSinosteel Cam S.A., the Cameroonian subsidiary of the stateowned Chinese miner, will develop the Lobe iron ore mine in the central African nation, helping China to diversify its sources of iron ore beyond Australia, with which it is in a trade war, and Brazil.p

　　pUnder an initial 20year mining convention, concluded on May 6 in the capital Yaounde and seen by Reuters on Thursday, Sinosteel Cam aims to mine 10 million tonnes of ore with 33 iron content annually.p

　　pIt would enrich this to produce 4 million tonnes of ore with 60 iron content, which would then be shipped. Highgrade iron ore is particularly valued in making steel because it results in lower carbon emissions than lower grade ore.p

　　pThe project will be 30 selffunded, with 70 of the financing coming from bank loans, the convention said.p

　　pThe Lobe mine, 200 kilometres 124 miles southeast of the economic capital Douala and 40 km from the port town of Kribi, holds 632.8 million tonnes of iron ore.p

　　pSinosteel will build a beneficiation plant, a pipeline to move the ore to the port, a mineral terminal at the port, and a power plant, the convention said, without specifying what type of power plant.p

　　pSinosteel officials have yet to say when they aim to start mining, but under Cameroons mining code the company must begin within five years from the mining permit being granted.p

　　pThe convention allows for 15 of the iron ore to be supplied to the local market, but Cameroon could authorise Sinosteel to export it if local demand is too weak. p

　　pThe project is expected to generate at least 600 direct jobs and 1,000 indirect jobs, Cameroons mines minister Dodo Ndoke Gabriel said.p

　　p1 621.3400 CFA francsp

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　　pp Reporting by Amindeh Blaise Atabong Editing by Helen Reid and Barbara Lewisp

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