Construction Of A Steel Processing Plant: Investors Seek Govt Support

The Minister of Trade, Luc Magloire Mbarga Atangana, recently received in audience investors in the area of iron and steel determined to establish in the South regional town, Kribi.

The government official held discussions with representatives of Cameroon Steel, a company controlled by Bestway Finance, headed by Cameroonian Alexandre Mbiam, in Yaounde recently.

The company representatives came to seek "support from the government" in carrying out a project to build a steel complex in Kribi. "Financing is available from the banking sector. But we need government support. Industry creates added value and jobs,” the General Manager of Cameroon Steel, Hong, highlighted shortly after the audience, without specifying the nature of the support requested or the banks ready to finance the project.

The investor said the investment necessary for the realisation of this complex was estimated at FCFA 50 billion for the first phase. The plant is backed by the Mbalam iron mining project, the license of which was issued in 2022 to Cameroon Mining Corporation, another entity linked to Bestway. Once the deposit enters production, 15 percent of the iron extracted will have to be processed on site to be sold on the local market. This means that the company will be able to transform up to 77.5 million tonnes of this ore according to the initial estimates of the potential of this deposit (517 million tonnes) made by Sundance Resources, the first project developer. The rest of the production will be shipped to the international market via the Port of Kribi.

Cameroon Steel, of which little is known so far, says it wants to strengthen the local steel processing industry to ensure the availability of various iron-based materials. The company also plans to export part of its production within the Economic Community of Central African States (ECCAS). "Production will develop according to local demand. Transforming locally means reducing the cost of purchasing steel.

“In recent times, we have inflation because of the war in Ukraine, producing with local material will allow every Cameroonian to benefit from low cost steel products, to proceed with industrial development as planned by President Paul Biya,” the Assistant General Manager of Cameroon Steel, Emmanuel Abossolo, highlighted.

The launch date of this processing unit is yet undisclosed, just like the start of the exploitation of the iron deposit. As part of this project, Bestway Finance Ltd and its partners will also have to build a 540km long railway line to connect Cameroon to Congo, including 510km on the Cameroonian side to connect from Mbalam to Lolabe where the ore terminal will be built at the port of Kribi. The overall cost of the investment is estimated at more than FCFA 5,000 billion.