Canyon Resources has confirmed the significant economic potential of its Minim Martap bauxite project in Cameroon, after completing a definitive feasibility study (DFS). The Australian miner has also begun early works on the project, which started in July.
The definitive feasibility study (DFS) outlines a Stage 1 capital expenditure of USD 96 million, with a pre-tax net present value of USD 835 million and a pre-tax internal rate of return of 29 per cent.
Production & shipment capacity
The firm is currently aiming for first ore production in the first quarter of next year, with the first bauxite shipments expected in the first half. Stage 1 of the project is designed for 1.2 million tonnes of annual capacity, with the possibility of expanding to a yearly capacity of 2.1 million tonnes after an additional investment of USD 63 million in the second year of operation.
Another USD 187 million during the five-year development and investment stage could increase production to 6.5 million tonnes, with output peaking at 10 million tonnes annually in year seven after an additional USD 101 million investment.
With mine plans for the Makan and Ngoundal deposits still to be determined, the overall lifespan of the Minim Martap projects could be over 20 years. At present, the project contains ore reserves of 144 million tonnes with an aluminium oxide grade of 51.2 per cent and a silicon dioxide grade of 1.7 per cent.
Production timeline
Back in September 2024, the firm received the mining licence grant from the World Bank, which confirms a total payment of USD 800 million, to be used for the rail corridor upgradation. In February 2025, the firm received approval for the location of the Inland Rail Facility. In the following month of the same year, the firm acquired a 9.1 per cent stake in Camrail, which provided them with rail access. In May 2025, the final acquisition of the existing port facilities owing a USD 140 million debt facility was finalised.
Tracing back to June 2025, Eagle Eyes, one of the key investors of the project, increased its investment in the firm to 55 per cent. In July, the firm appointed major contracts for the mining operations, which will be using the surface mine, aiding in road upgradation, haulage and IRF. In August, the DFS results were concluded by JORC-compliant Mineral Resource Estimates.
Key highlights of the definitive feasibility study
The firm has published the DFS on its Minim Martap Bauxite Project in Cameroon and confirmed it as a tier-one operation. The DFS laid out a robust, staged development proposal with a pre-tax net present value (NPV) of USD 835 million and an internal rate of return (IRR) of 29 per cent based on high-quality ore reserves.
The project has a 33 per cent increase in direct shipping ore (DSO) reserves, with 144 million tonnes at 51.2 per cent alumina and 1.7 per cent silica over a 20-year mine life. Furthermore, this is quality bauxite that will attract an estimated premium price of up to USD 11 per tonne in excess of Guinea Standard bauxite prices.
Canyon, so far, has secured a facility of USD 140 million of debt from AFG Bank Cameroon, with USD 26 million already disbursed to fund infrastructure development. In addition, the firm has a 9.1 per cent equity in Camrail, the national rail operator, which is upgrading the whole rail corridor as part of a USD 818 million PQ2-funded program scheduled to be completed in 2030. Canyon will benefit from a partnership with Camrail as production ramps up at the same time as the expansion of rail capacity.
With a total JORC-compliant mineral resource of 1,027 million tonnes at 45.3 per cent alumina and 2.7 per cent silica, the Minim Martap project is a long-life high-grade bauxite operation with real growth opportunities.
Also read: Canyon Resources moves up the deck in the Minim Martap bauxite project
Connecting dots with the rail network operator
Impressively, the Minim Martap project's output will scale in accordance with Cameroon's PQ2 rail upgrade, which will increase the overall rail capacity. The company has a 9.1 per cent stake in Camrail, the rail network operator of the country, which supports the strategic delivery of the PQ2 project. The World Bank has allocated USD 818 million for the upgrade of the rail corridor, which Camrail intends to deliver by 2030.
The approval of this acquisition, received in March 2025, will allow the company to gain greater control over critical logistics infrastructure for its Minim Martap Bauxite Project. Camrail has had a concession since 1999 that will enable it to operate the freight and passenger transportation services for Cameroon's rail networks for a period of 20 years.
This includes the railway corridor from the Adamawa Region all the way to the Port of Douala. The acquisition will ensure that Canyon can synchronise the ramp-up in production with the corresponding increase in rail capacity, thus reducing logistics risk for major transportation and aligning with its mine-to-port strategy.
Locations in focus
Canyon Resources continues to implement a mine-to-port logistics base strategy for the Minim Martap project, utilising an 800 km existing rail corridor to Douala port with planned rail upgrades being jointly funded by the World Bank and the European Investment Bank. The company is planning to purchase its own locomotives and wagons in 2025 to ensure low-cost and reliable transport. A dedicated bauxite terminal on the Wouri River adjacent to Dibamba, with dedicated rail access, will provide unloading, stockpiling and barge-loading facilities to facilitate unloading operations.
Port access approval
The firm has been granted a Port Access Agreement from the Port Authority of Douala for its subsidiary Camalco Cameroon SA to use 65,000 square metres of port storage area. The new port facility will have the capacity to handle 6 million tonnes per annum of bauxite ore, intending to grow capacity on a phased basis up to 10 MTPA. The port is also strategically located with existing rail tracks, along with Camrail's Rolling Stock Repair Workshop.
With this operational approval, all of the other conditions precedent have now been satisfied for Eagle Eye Asset Holdings Pte Ltd to complete the 500 million options that they hold for approximately USD 22 million - this will significantly enhance Canyon's overall financial position. With a Port Access Agreement now secured, Canyon is advancing to its Final Investment Decision (FID) in late Q2 2025 with the anticipated first bauxite shipment in the first half of 2026.
Also read: Canyon Resources achieves initial drilling targets for Minim Martap Bauxite Project
Logistic planning at a glance
Canyon is developing its logistics strategy for the Minim Martap project based on utilising Cameroon's existing rail system to haul bauxite from the mine to coastal export terminals. The company has signed agreements with the national rail authorities to guarantee capacity to accommodate both initial production and subsequent scale-up. Their integrated transport system links the mine with port facilities that accommodate international shipping. This will facilitate assurance of reliable, cost-efficient delivery to global markets.
Government participation in the project
The Cameroonian government will benefit significantly economically from the project. As a part of the mining convention signed in July 2024, the project will grant the Cameroonian government a free 10 per cent equity stake in the project, and it will receive a 5 per cent royalty on all revenues generated by the project.
As a result, the government can participate directly in project governance and possible future benefits, while the royalty is structured to generate immediate revenue from the first shipment of resources. The royalty and equity together provide both immediate economic benefits and long-term project value as the project progresses.
The Minim Martap project takes the form of a staged, high-grade bauxite project fully backed by latest DFS results, logistics covering mine-to-port, and some of the longest-term infrastructure arrangements in Africa, scalability of production growth across a multi-decade project, integrated rail and port access, equity and royalty support of the Cameroonian government, and a direct carbon impact of producing ideal future-centric materials that will result in low cost, lower emissions delivered, longer term bauxite exports. At the same time, greater value is created over the life of the 20-year program.
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