Sundance Resources Shares Gain After Port Accord Signed with China Partner
Sundance Resources Ltd., seeking to develop a $3.4 billion iron ore mine in West Africa, rose 12 percent in Sydney trading after signing an initial accord with China Harbour Engineering Co. to study construction of a port.
Sundance rose to its highest in two years, trading at 26.5 cents 10.26 a.m. Sydney time on the Australian stock exchange. The Perth-based company’s stock has gained 74 percent in the past five trading days.
The company, whose board members were killed in a plane crash in Congo in June, aims to complete an initial study for the Mbalam iron ore project in Cameron and Congo by the end of this year. The accord is for a proposed port at Lolabe in Cameroon and follows the signing of an initial railroad agreement last week with CRCC China-African Construction Ltd.
Chinese companies are expanding investments in steelmaking raw materials globally. Aluminum Corp. of China Ltd. in July agreed to pay $1.35 billion for a stake in Rio Tinto Group’s Simandou iron ore project in Guinea.
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