Canyon Resources is strategically pushing forward in the global bauxite market, with its Minim Martap project in Cameroon taking centre stage. CEO Peter Secker describes this project as "the largest high-grade undeveloped bauxite deposit worldwide". The company is positioning this asset as a prime opportunity for investors aiming to get a piece of the aluminium supply chain, especially as demand from the electric vehicle and aerospace sectors keeps ramping up.
The Minim Martap bauxite project stands out for over a billion tonnes of reserves, each grading at 51.2 per cent alumina with less than 1.7 per cent silica. That's impressive by any industry standard. Compared to other projects in the global market, these numbers give Minim Martap a solid edge.
The Minim Martap project has been on the radar since the 1950s, but the progress stalled for decades due to a lack of infrastructure. With new coastal rail access finally in place and the World Bank's recent USD 816 million investment to expand rail capacity, the project is now positioned for genuine commercial development.
Further glance at the logistics front
The logistics setup spans approximately 40 kilometres from the mine to the rail connection, utilising mechanised road haulage to link with existing infrastructure. The current rail line supports about 2 million tonnes per year. With financial backing from the World Bank, upgrades are in motion to boost rail capacity and reach the target of 10 million tonnes annually.
Douala port already benefits from reliable rail links. Right now, Canyon's main push is expanding stockpile capacity with the target of setting 160,000 tonnes. For ore loading, the firm is opting for contracted barging services. It's a cost-efficient approach that still ensures consistent export performance without heavy upfront investment.
Plans for the mining operation
The mining approach takes advantage of the site's unique geology. Ore bodies are spread out along plateaus that run about 50 kilometres north to south, and they're elevated roughly 200 meters above the surrounding land. The plan is to remove the top 20 meters of these plateaus to reach the resource beneath.
The project boasts an impressive stripping ratio with just 0.3 tonnes of waste per tonne of ore over the initial twenty-year period. That's a significant cost advantage when stacked up against most hard rock mining operations. By deploying mechanised continuous surface miners that work in precise half-meter strips, the operation ensures efficient ore recovery while keeping both capital and operating expenses in check.
Rehabilitation takes place alongside ongoing mining operations where topsoil is carefully stockpiled and then reapplied to completed areas. This approach not only reduces environmental impact but also helps manage long-term closure costs. Additionally, with no resident populations within the project's license area, the development process faces fewer logistical challenges and proceeds more efficiently.
Also read: Canyon Resources nominates Peter Secker as CEO to enhance the Bauxite Projects
Market dominance and outlook
China dominates the global bauxite market with roughly 75 per cent of the 200 million tonnes traded annually ending up in Chinese ports. Seaborne shipments are at the heart of this business and the rest of the world is supplying China's massive demand.
Demand keeps climbing, mainly due to sectors like electric vehicles and aerospace. EVs need a lot more aluminium than conventional cars and aerospace demand keeps ticking upward. With these industries driving the trend, the outlook for price stability and long-term growth in the aluminium market looks solid.
Bauxite prices have been on a rollercoaster, peaking close to USD 120 per tonne in December due to the supply issues in Guinea, then settling back down to roughly USD 75 per tonne. That said, Canyon's high-quality product is still positioned to command a premium, likely fetching around USD 86 to 87 per tonne under the current market conditions.
New outlook on financial ground
The firm's production cost is estimated at around USD 35 per tonne to prepare the ore for shipping, plus another USD 20 per tonne for freight to China. That puts the firm's total delivered cost at about USD 55 per tonne. With current market prices above USD 85 per tonne, the company has a solid margin of roughly USD 30 per tonne.
Starting with a production rate of 2 million tonnes per year, EBITDA is set to exceed USD 60 million at current price levels. Each step up in capacity adds another million tonnes, roughly USD 30 million in incremental revenue. The phased expansion approach is pretty straightforward. As output increases, there's a clear line of sight to consistent cash flow growth.
Canyon Resources is positioned with a beautiful bauxite asset with 1.1 billion tonnes at an impressive 51 per cent alumina grade. With capex under USD 100 million to reach production, a USD 140 million debt facility has already been secured. The company is leveraging existing infrastructure and a development team with real experience.
Focus: Aerospace & EV
The aluminium supply chain is seeing some fundamental transformation, driven by the global energy shift and the race to decarbonise industries. Electric vehicles are ramping up aluminium use to around 180kg per car, which is significantly higher than the traditional models.
At the same time, there's a noticeable trend toward regionalising supply chains, as major consuming countries look to reduce dependence on a handful of dominant production hubs. It's a rapidly evolving landscape and businesses are having to rethink sourcing strategies to stay competitive.
The company finds itself in a strong strategic position with a high-grade bauxite deposit located in a stable, low-risk jurisdiction, providing a clear advantage over many of its peers. The low-silica content of their bauxite isn't just a technical detail; it translates directly into reduced processing costs and a lighter environmental footprint, both of which are increasingly important in today's market.
As CEO Peter Secker put it, "Take USD 80 bauxite and convert it into USD 550 alumina," summing up the kind of downstream value the company can unlock, especially as global supply continues to tighten.
With hardly any new bauxite projects coming online globally, the firm's planned 2026 production launch puts it in a strong position to benefit from premium pricing as supply tightens. On top of that, their ability to scale output from 2 million up to 10 million tonnes annually means they can unlock new value at multiple points, especially as global demand for aluminium keeps climbing.
Also read: Canyon Resources moves up the deck in the Minim Martap bauxite project
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