Page 13 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 11
PORT AND RAIL CONCESSION
AGREEMENTS, CAMEROON
Sundance’s subsidiary Cam Iron SA and the Government of Cameroon signed the
Rail Agreement and Mineral Terminal Agreement for the rail and port infrastructure
servicing the Mbalam-Nabeba Iron Ore Project in June 2014.
The purpose of the agreements is to regulate the rights
and obligations of Cam Iron SA and the Government of
Cameroon in relation to the ownership, construction, operation
and regulation of the key infrastructure assets servicing the
Mbalam and Nabeba iron ore mines, as well as detailing the
procedure for eventual transfer of those assets back to the
Government of Cameroon.
The Mineral Terminal Agreement governs the conduct of
the construction, operation and maintenance of the Mineral
Terminal Facilities and Blending Operations. The Railway
Agreement governs the conduct of the railway operations,
namely, the construction, operation and maintenance of the
Railway Facilities.
The agreements also outline:
• a fair and transparent third party access regime to the
infrastructure, in which third party access is not to affect
the capacity which is to service the requirements of
Cam Iron SA and Congo Iron SA;
• a pathway to expand the infrastructure once built; and
• the mechanism to more easily facilitate changes to
the legal ownership of the railway and mineral terminal
facilities in the future (in the case of the Build Own
Operate Transfer financial model being applied).
11 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014
These arrangements will be implemented as an integrated supply chain via an operations company which has been established by
Cam Iron SA for that purpose.
The signing of these agreements also formalises the legal and fiscal terms under which Cam Iron SA will operate both the port
and rail infrastructure facilities to be constructed under the EPC agreement and addresses two of the most significant conditions
precedent to the Mbalam Convention.