By: African mining market

Australian mining company Canyon Resources will invest US$96 million to launch bauxite production at its Minim Martap project in Cameroon in January 2026. The plan was outlined in the definitive feasibility study released on 1st September, positioning the site as the country’s first bauxite mine.

The investment will be covered by a US$140 million facility secured in May from AFG Bank Cameroon and equity raised through A$25.4 million (US$16.5 million) with support from Eagle Eye Asset Holdings (EEA), Canyon’s main shareholder. The first phase aims for annual production of 1.2 million tons starting in 2026.

Output is expected to increase over time. The feasibility study projects production of 10 million tons per year by 2032, supported by a total budget of US$446 million over the life of the project. This target is significantly higher than the 6.4 million tons per year projected in Canyon’s 2022 feasibility study.

While Canyon expects long-term backing from EEA, the company has not yet detailed how it will finance the additional spending required to expand production. Negotiations to secure offtake agreements for the first output are planned by the end of 2025.

With a projected 20-year lifespan, Minim Martap is set to generate new revenue streams for Cameroon. Under the mining convention signed with Canyon in July 2024, the state will receive a free 10% stake in the project and a 5% royalty on revenues.