After the discovery of Iron Ore about 12 years ago, and the commencement of mining in 2017, the Central African State has begun the exportation of Iron Ore.
At a ceremony that heralded the shipping of the natural resource; which had in attendance the Minister of mining, Mr Martin Kabwelulu, it was reported that 23, 000 tonnes of Iron Ore was loaded on a China-bound ship at the Pointe Noire Ports Authority where it will be processed for a European buyer.
The mineral product was mined by Sapro SA owned by a native of the country; Mr Paul Obambi and Glencore; a British – Swiss multinational trading and mining company.
The Future Of Iron Ore Mining In Sudan
Sapro SA, the first to mine the country’s Iron Ore, projects that by 2022 they would have hit an output level of 12million tonnes per year.
While Glencore, in conjunction with British Virgin Islands-incorporated Zanga Iron Ore Company Limited (ZIOC), also foresee shipping 2 million tonnes of Iron Ore after two years and 30million tonnes by 2024.
The Government of Congo, Sapro SA, and Ashley Global, a British shipping company, are working hand in hand to spend a total of $550 million to renew Pointe Noire’s deepwater port, the Mayoko mine, and an old railway track. Mr Paul Obambi further stating his optimism in the production of the mineral resources said;
“We are heading towards more than a century of production”.
The Effect On Sudan’s Economy
This development is definitely a very welcome one seeing that the oil-dependent state has suffered economic set back since the fall in oil prices in 2014. This exportation opportunity can help the country gain a sure footing economically and financially to diversify its stream of income.
The price of Iron Ore market climate is also in favour of the country’s economy with the price close to its highest induced by the growing demand from China and the crumbling of Brazil’s vale operated dam which has resulted in a decline in global output.
Last year, the country became the newest member of the Organisation of Petroleum Exporting Countries, OPEC. This development brings the overall membership of the organization to 15 members; making Congo the 7th African country in the organisation joining Algeria, Angola, Gabon, Equatorial Guinea, Libya and Nigeria.