Prometal aspires to mine own iron ore for its steelworks

摘要

The Cameroonian firm Prometal Mining is waiting for the Yaoundé authorities to decide whether to grant it a permit to prospect for iron ore at Lolabe II in the far south-west of the country, not far from the port town of Kribi. Branching out into iron ore exploration is a new departure for Prometal, the parent company of Prometal Mining, which until now has focused its activities on the other end of the mining industry supply chain, namely the processing of raw materials. Prometal operates three steelworks in Douala and a fourth is in the pipeline to expand the company's treatment capacities and the range of products produced at its plants. These ambitions could be well served if it manages to break into the iron ore extraction market. However, no iron ore project has ever entered into production in Cameroon despite the presence of substantial deposits in the country such as the Mamelles de Kribi and Mbalam sites. The logistical costs and low iron ore prices are major obstacles to such ventures.