Sundance Resources Ltd. (SDL), seeking to develop a $3.4 billion iron ore mine in West Africa, rose to its highest in two years after signing an initial accord with China Harbour Engineering Co. to study construction of a port.
Sundance rose 6 percent to 26.5 cents at the 4:10 p.m. Sydney time close on the Australian stock exchange. That’s the highest since Sept. 10, 2008. The Perth-based company’s stock has gained 70 percent in the past five trading day.
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 Cameroon 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 (RIO)’s Simandou iron ore project in Guinea.
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