Canyon Resources partners with China Minmetals Corporation subsidiary MCC-CIE for BFS at Minim Martap Bauxite project

Canyon Resources Limited announced the execution of a bankable feasibility study (BFS) contract with leading Chinese engineering, procurement and construction (EPC) firm Changtian International Engineering Corporation of MCC (MCC-CIE), for the development of Stage 1 of Canyon’s Minim Martap bauxite project.

MCC-CIE is part of China Metallurgical Group Corporation (MCC), which is a wholly-owned subsidiary of China Minmetals Corporation (Minmetals).

MCC-CIE, one of China’s leading EPC companies and is a one-stop-shop for the project development life cycle, incorporating feasibility studies, engineering design, metallurgical infrastructure development, heavy industry projects and equipment manufacturing. MCC-CIE works extensively with leading banks in China and as part of the BFS scope will ensure that the BFS is compliant to the requirements of those funding institutions. The scope of the BFS work program will preserve broader funding source options for the Project.

Minmetals is a major international metals and mining corporation with over US$86 billion in revenue and more than 200,000 employees. Minmetals possesses a vertically-integrated production chain with metal and mineral business at its core, engaging in the production and trading of metals and minerals, including bauxite, alumina, aluminium, copper, tungsten, tin, antimony, lead, zinc, and nickel. Minmetals participates in a Joint Venture for the mining and processing of bauxite in Jamaica and has interests in aluminium in China.

Phillip Gallagher, Managing Director, Canyon Resources, said: “Canyon will deliver a BFS for the Minim Martap Project in 2021 and the contract with our new partner in MCC-CIE forms a core part of that delivery. The BFS will provide all the required technical inputs for obtaining a mining permit in Cameroon. MCC-CIE is a leading EPC contractor with substantial African mining experience.”

“Beyond the study itself, we have secured a strategic partner in MCC-CIE who will work with Canyon to deliver this world-class Project and whose connection with the broader Minmetals group will be instrumental in our upcoming discussions in regard to Project off-take and funding arrangements.”

James Durrant, Director of Projects, Canyon Resources, said: “We are very pleased to be partnering with world-class and diversified engineering and construction firm MCC-CIE and we look forward to working together to progress the project through the BFS phase and beyond. We thank Mr Peter Su, our recent strategic investor in Canyon, who assisted with appropriate introductions.”

The scope of the BFS contract includes the mine and port infrastructure. A specialist engineering group will be engaged separately for the rail component of the BFS, and this appointment is in the final negotiation stage. Australian-based Mining Plus who managed the PFS has been retained to focus on Resource and Reserve development and mining contract tendering, and to ensure continuity of transition and learning’s from PFS to BFS.

Canyon is nearing completion of the assembly of the BFS team of employees, consultants and partners and will be re-commencing in-country face-to-face commercial and legal discussions with the representatives of the Government of Cameroon, Camrail and the Port Authority of Douala in January 2021.