Minister Gabriel Dodo and the DG of SINOSTEEL CAM SA sign the iron ore industrial project agreement
The government of Cameroon and SINOSTEEL CAM SA, a Cameroonian subsidiary of the Chinese state-owned company, SINOSTEEL CORPORATION LTD, have signed a mining agreement for the Lobe-Kribi iron ore industrial project. This took place at the Yaoundé Conference Center on Friday, May 6, 2022, in the presence of representatives from both the government of Cameroon and SINOSTEEL.
Representing the government of Cameroon was Gabriel Dodo Ndoke, the Minister of Mines, Industry, and Technological Development, while Zheng Zhengao, the Director General of SINOSTEEL CAM SA, signed on behalf of the company.
Other notable figures at the signing ceremony included the Governor of the South Region, the Chinese Ambassador to Cameroon, the Representative of the Governor of the Centre Region, and other officials who graced the event.
The iron ore deposit at Lobe, located in the South Region and covering a total surface area of 138 square kilometers, is estimated to hold 632.8 million tons of iron ore. With a projected investment of 420 billion XAF in this project, SINOSTEEL CAM SA plans to exploit 10 million tons of iron ore per year, which will be enriched to produce 4 million tons of high-grade iron.
The project is expected to generate 500 billion XAF for the government of Cameroon over its lifetime, along with additional development and social opportunities in the project area.
“This project, which will soon start, will bring to our country a lot of job opportunities, revenue for the state, and development for local communities,” said Gabriel Dodo Ndoke, Minister of Mines, Industry, and Technological Development.
The Director General of SINOSTEEL CAM SA, who was physically present at the ceremony, along with other SINOSTEEL Co. Ltd officials who participated remotely from China, expressed gratitude to the government of Cameroon and, in particular, President Paul Biya, for trusting them and opening doors for their operations in Cameroon.
“We will begin work in a few weeks. We will build the infrastructure and then commence commercial production. We will give 25 billion FCFA per year to the state of Cameroon because it is a small project, with the investment being less than $1 billion USD. However, it is important as it opens the door to the large-scale productive investment of China in Cameroon. It is not only for infrastructure; it is a productive investment with returns on investment,” said Ntep Gweth Paul, Adviser, Mining Engineer, and Geologist for SINOSTEEL CAM SA.
Apart from infrastructural development and the financial benefits to Cameroon, this project is expected to create 600 direct jobs and 1,000 indirect jobs for Cameroonians.
