A key announcement has been made by one of the biggest mining companies of Australia, Canyon Resources Limited, a bauxite development and exploration company, regarding the results of a definitive Feasibility Study alongside an upgrade in the ore reserves for the ongoing Minim Martap bauxite project, with the status being at a tier-one operation.
The company, in relation to the Minim Martap bauxite project, is set to boost the total present net value of USD 835 million with the internal return estimated to be 29 per cent, reflecting a crucial increase in ore reserves.
In addition, Canyon is under the plan to begin production of the Minim Martap bauxite project in the first half of 2026. For commencing the project, the firm shall leverage existing rail and port infrastructure with the focus on minimising the initial capital expenditure. With this development, the company shall be able to improve its position within the bauxite vertical and gain substantial economic benefits.
The company has successfully secured the required funds to commence the first-phase operations, leveraging a AUD 140 million (USD 91.77 million) facility arranged in May with AFG Bank Cameroon, alongside equity financing of AUD 25.4 million (USD 16.5 million) supported by Eagle Eye Asset Holdings (EEA), the company’s principal shareholder. The initial phase targets an annual output of 1.2 million tonnes commencing in 2026.
Besides this, the company also further anticipates a gradual increase in its total output, with its feasibility study estimating an annual production of 10 million tonnes by 2032. The expansion is backed by a total project budget of USD 446 million, marking a significant upward revision from the 6.4 million tonnes per year forecasted in the company’s 2022 feasibility study.
Also read: Canyon Resources secures USD 24.5M to advance aluminium supply chain in Cameroon
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