Canyon Resources Receives Crucial Port Access Approval
Highlights:
- Detailed design work for bauxite port facilities is underway following port access approval.
- Final tenders for mine development and road upgrades to the Inland Rail Facility are complete.
- Engineering design for the rail facility is nearing half completion, ensuring timely progression.
- Upgrade evaluations for rail and port capacity to scale from 6Mtpa to 10Mtpa are now in motion.
- Port access marks the last condition for the exercise of $22 million options by Eagle Eye Asset Holdings.
- Expected delivery of first locomotive is set for early 2026.
- The Final Investment Decision for the Minim Martap Project is on schedule for mid-2025.
- The initial bauxite shipment is anticipated in the first half of 2026.
In a significant advancement, Canyon Resources Limited (ASX: CAY) has successfully secured approval from the Port Authority of Douala through its subsidiary, Camalco Cameroon SA. This approval facilitates critical access to land at the Port of Douala, crucial for the efficient transport and storage of bauxite ore.
This designated storage area spans 65,000 square meters, enabling Canyon to handle an impressive volume of 6 million tonnes per annum (Mtpa) of bauxite ore, with plans to increase this production capacity in subsequent phases to 10Mtpa. The existing railway infrastructure and port facilities will significantly streamline operations and reduce initial capital expenditures due to the pre-existing infrastructure’s availability.
Achieving a port agreement completes the required infrastructure for the Minim Martap Bauxite Project, following the recent strategic investment in CAMRAIL S.A., which enhances rail access to the site. These developments considerably mitigate risks associated with logistics, aligning with the objectives outlined in the upcoming Definitive Feasibility Study (DFS) that is expected to conclude by the third quarter of 2025. This DFS will evaluate a two-stage development approach designed to optimize production ramp-up, aiming for the first bauxite shipment by early 2026.
Moreover, securing access to the port is pivotal for Canyon’s major stakeholder, Eagle Eye Asset Holdings Pte Ltd, to exercise its 500 million options, set at $0.07 each, approved during the Company’s recent AGM. Canyon anticipates these options will be exercised soon, further enabling project financing.
Executive Chairman Mark Hohnen stated, “Gaining access to vital export infrastructure marks a groundbreaking achievement for Canyon, propelling the development of the Minim Martap Bauxite Project forward. With strategically positioned port facilities, we are poised to efficiently transport high-quality bauxite ore from our operations to the market.”
He further remarked, “This foundational access bolsters our phased development strategy, with plans for our first shipment in early 2026. These achievements are indicative of our commitment to hastening construction for the project while finalizing our Definitive Feasibility Study and preparing for our Final Investment Decision.”
As Canyon progresses, the established transport networks are anticipated to play an essential role in the effective movement of bauxite ore from the mine to port. Canyon’s involvement in these vital infrastructure systems ensures scalability and security, backed by the support of the Cameroonian government and regional stakeholders. This strategic positioning not only prepares Canyon to meet growing global bauxite demands but also enhances its stature as a significant player in the industry.
This announcement has been reviewed and approved by Canyon’s Board of Directors.
Contact Information:
Jean-Sebastien Boutet
Chief Executive Officer
Canyon Resources Limited
T: +61 8 6385 2263
E: info@canyonresources.com.au
Cameron Gilenko
Investor Relations & Media
Sodali & Co
T: +61 6160 4909
E: cameron.gilenko@sodali.com
Frequently Asked Questions
What is the latest achievement for Canyon Resources?
Canyon Resources has secured port access approval for the Minim Martap Bauxite Project, enhancing logistics and operational efficiency.
When is the Final Investment Decision expected?
The Final Investment Decision for the project is anticipated to take place in the second quarter of 2025.
What is the capacity of the bauxite project?
The project initially targets a production capacity of 6 million tonnes per annum, with plans to expand it to 10 million tonnes per annum in the future.
Who are Canyon's main stakeholders?
Canyon's main long-term shareholder is Eagle Eye Asset Holdings Pte Ltd, which is expected to exercise significant options tied to the project shortly.
What is the timeline for the first bauxite shipment?
The first shipment of bauxite from the project is scheduled for the first half of 2026.
