Cameroon’s government signed a high-grade iron ore mining deal worth 420 billion CFA franc with Sinosteel Corporation Limited’s subsidiary, Sinosteel Cam S.A.

Sinosteel Cam will develop the Lobe iron ore mine in the country. Its goal was to secure different sources of iron ore other than Australia and Brazil.

The company’s plan was to produce 4 million tons of ore with 60% iron content.

This project will be self-funded by 30%, and the rest will be financing from bank loans.

The officials of Sinosteel did not say why they will begin the mining; however, it was believed that it will start within five years after the mining permit being granted.

15% of the iron ore will be delivered to the domestic market, but Cameroon could allow Sinosteel to export more once the domestic demand is weak.