Canyon Resources Limited has announced the execution of a Memorandum of Understanding (MOU) with Camrail, the Cameroon rail infrastructure operator, for the haulage of 5 million tonnes of bauxite per annum from Canyon’s Minim Martap Project (Project).
Canyon has been in discussions with Camrail and its parent company, Bolloré Africa Logistics, regarding the development of the Minim Martap Project as part of feasibility studies on the Project.
The Minim Martap Project in Cameroon, Central Africa presents a direct shipping ore (DSO) development opportunity. It contains a mineral resource estimate of one billion tonnes of at 45.2% aluminium oxide.
Canyon Resources is progressing on its wholly-owned project to be a long-term producer of high-quality, low-impurity bauxite through a multi-stage development program that utilises existing infrastructure in Cameroon.
The bauxite project is located adjoining to the main rail line that links the region to the Atlantic port of Douala. Utilising the rail line and existing port supports a low-Capex and low-Opex solution to deliver a quality bauxite product to the growing aluminium industry.
As part of the MOU, Camrail agrees to assist Canyon concerning the proposed technical and commercial logistics solutions, including supporting Canyon in its dealings with strategic Government representatives, key stakeholders, input into policy development, compliance and regulatory requirements, and funding options.
James Durrant, Canyon Director of Projects said: "The finalisation of the MoU with Camrail is an important step forward as it details a pathway and timeline to complete commercial rail access and operational agreements for the Minim Martap Project.”
The mining company plans to have its team of experts in Cameroon by January 2021 to initiate face-to-face discussions to establish binding commercial agreements with Camrail.
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