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- Bauxite developer Canyon Resources (CAY) has signed a memorandum of understanding with rail infrastructure operator, Camrail
- The companies will aim to transport five million tonnes of bauxite per year from Canyon’s Minim Martap Project in Cameroon, Central Africa
- The idea is to utilise the rail line and existing port of Douala to keep capital and operational costs low
- This is part of Canyon’s plan to develop the project to be a long-term producer of high-quality bauxite for the growing aluminium industry
- Camrail will assist in discussions with key parties on policy development, compliance, and funding options
- Company shares have dropped 3.85 per cent to trade for 12.5 cents in early afternoon trade
Canyon Resources (CAY) has signed a memorandum of understanding (MoU) with rail infrastructure operator, Camrail.
The Minim Martap Project is located in Cameroon, Central Africa and presents a direct shipping ore (DSO) development opportunity. It contains a mineral resource estimate of one billion tonnes of at 45.2 per cent aluminium oxide.
Canyon is developing 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 sits adjacent 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.
Together, the companies will work together to develop a solution to haul five million tonnes of bauxite per annum from Canyon’s Minim Martap Project.
Camrail will support Canyon in discussions with government representatives, key stakeholders, input into policy development, compliance and regulatory requirements, and funding options.
“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,” Canyon Director of Projects James Durrant said.
The company plans to have its team of experts in Cameroon by January 2021 to initiate face-to-face discussions in order to establish binding commercial agreements with Camrail.
Company shares have dropped 3.85 per cent to trade for 12.5 cents in early afternoon trade.
