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07 JULY 2022 AL CIRCLE

Canyon’s bankable feasibility study reveals 176 billion FCFA financing for Minim Martap bauxite project infrastructure

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The Australian mining company Canyon Resources has reportedly revealed a bankable feasibility study of world-class Minim Martap bauxite project in Cameroon. The study was carried out by Canyon’s strategic partner MCC-CIE, covering details of funding for various aspects of the project.

Canyon’s bankable feasibility study reveals 176 billion FCFA financing for Minim Martap bauxite project infrastructure

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One of the aspects is project realization, the study of which evaluates the financing of 176 billion FCFA. This amount will be used for the development of infrastructure on the mining site, the development of internal railway line, and the financing of road transport, among others.

The plan is to increase the sizes of trains for the transport of bauxite, with a length of 600 to 1200 metre per train, acquire new wagons and locomotives, and then transfer to the operator Cameroon Railways at the end of the project. In addition, about 13.516 billion FCFA of 176 billion FCFA will be used for the development of a terminal dedicated exclusively to bauxite loading operations.

The financing of these projects will come from the strategic agreement signed in 2021 between Canyon Resources and the Chinese Zhongye Changtian International Engineering Corporation (MCC-CIE). In March 2022, the Chinese engineering company reiterated its commitment to Canyon in a letter addressed to Cameroonian Prime Minister Joseph Dion Ngute, reassuring full support to Minim Martap project.

Besides financing, MCC-CIE, as a strategic partner, will also provide technical and commercial support to Canyon, as per the press release made public by Canyon Resources in August 2021.

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The clauses given in the agreement make compulsory for both the companies to jointly hold meetings to promote the financing and execution of the project. The parties have agreed to reach a more comprehensive legally binding contract to replace the non-binding relationship established by the MoU and strategic partnership agreement.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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