Indian steel and power manufacturer Jindal Steel & Power Ltd (JSPL) has revealed plans to invest US$500mn in Cameroon to build a power plant, a railway line and an iron ore processing plant
According to a report aired on Cameroon’s state broadcaster CRTV, a 500MW thermal power station will be built in the southwestern town of Limbe, while the rail line will run between the coastal city of Kribi and Perth-based Sundance Resources Ltd’s iron ore project in Mbalam in the east. The processing plant will be located in Kribi, home to a deep-water port.
The report, which quoted a mines ministry statement, also added, “Jindal Steel and Power will invest nearly US$500mn in the beginning. Afterward, other investment projects could also follow.”
Jindal has been in talks with Caminex SARL, a unit of Toronto and AIM-listed Afferro Mining, to process ore from its Nkout iron ore project at the Kribi plant, the radio station reported.
Jindal chairman Naveen Jindal met with Cameroon’s President Paul Biya recently to discuss the projects.
The chairman told journalists after the meeting, “We feel that Cameroon offers lots of investment opportunities especially in the areas of mineral development, infrastructure development and power generation.
“We feel very encouraged, we feel very confident about investing in Cameroon.”
The company has also revealed plans to acquire more coal mines in South Africa and Mozambique.
JSPL director and group chief financial officer, Sushil Maroo, said, “We are looking at several parts of the world where we can expand our business. We have already acquired mines in South Africa, Mozambique and Botswana, and have also got coal mining licences in Australia. We are looking at resources in many other countries for both coal and iron ore.”
Maroo revealed that the company has also acquired diamond exploration licences in DR Congo, coal mining rights in South Africa, Mozambique and Australia, limestone exploration in Madagascar and copper mining in Zambia and Tanzania, among others.
