ASX-listed Canyon Resources reports that locomotives were successfully delivered to its subsidiary, Camalco Cameroon, in June, marking a milestone in the development of the company’s mine-to-port logistics infrastructure and supporting the broader production ramp-up at its Minim Martap bauxite project, in Cameroon.

The delivery follows the recent increase in the company's equity stake in Camrail, Cameroon's primary rail operator, from 9.1% to 26.9%.

The enhanced holding will provide greater influence across bauxite transportation, strengthened oversight of the PQ2 upgrade and improved strategic alignment with the Minim Martap project, further derisking the mine-to-port logistics chain.

Following the successful arrival of the locomotives in Cameroon, the company says it will begin a six-to-eight-week commissioning programme, as well as a testing and operator training programme, positioning the rail network for the start of initial ore transport between the Inland Rail Facility (IRF) and the Port of Douala in the third quarter of this year.

Canyon notes that the first 60 rail wagons have now left the factory and are scheduled to arrive in Cameroon in mid-August. The remaining 100 wagons are scheduled to arrive in Doula late in the third quarter.

The Stage 1 rail fleet, comprising seven locomotives and 160 wagons, is expected to provide transport capacity of about 35 000 wet metric tonnes (wmt) a month, establishing the foundation for the project's planned production ramp-up and export activities.

Building on this milestone, and subject to finalising $160-million of additional funding, the Stage 2 phase of the Minim Martap project development includes upgrades to sections of the rail infrastructure and the delivery of an additional 15 locomotives and 400 wagons.

This expansion is expected to increase rail transport capacity to about 105 000 wmt a month by early in the third quarter of 2027, supporting the company's strategy to progressively scale production and unlock the full value of the bauxite project.

Without the additional funding of $160-million, Canyon says, Minim Martap’s production will remain at about 35 000 wmt a month.

Meanwhile, trial mining is expected to begin in the third quarter of this year, subject to final discussions with the local communities, allowing the company to establish operational readiness, optimise mining procedures and progressively build ore stockpiles ahead of first shipments.

Canyon says the mining operation is expected to achieve required production rates well in advance of logistics commissioning, ensuring ore availability is not a constraint on the company's planned production and export schedule.

Infrastructure- and operational-readiness work has been progressing as planned, and the company is working closely with its logistics and operational partners to ensure a smooth mobilisation ahead of commencement.

Construction of the ore haulage road and IRF, and dredging of the port, are all scheduled to be completed late in the third quarter of this year to allow first bauxite shipment of Minim Martap ore from the Port of Douala in the fourth quarter of this year.

Meanwhile, Canyon also announced that Mark Hohnen will retire as nonexecutive chairperson and director of Canyon with effect from August 25.

During his time as chairperson, Canyon says, Hohnen made a significant contribution to the company, which includes strategic execution and leadership, delivery of the critical mining licence and ongoing development success that has positioned Minim Martap as a near-term operational asset.

The company thanks Hohnen for his dedicated service and commitment, noting that a further update regarding board succession arrangements will be provided in due course.

“The board and management are deeply saddened to hear of Mark’s retirement. His leadership, commitment and significant contribution across all levels of the company over many years have been instrumental in advancing the Minim Martap project to its current stage.

“The project would not be where it is today without his dedication and influence. On behalf of the company, we extend our sincere thanks to Mark and wish him all the best in his retirement,” says Canyon MD Peter Secker.

He adds that the company is pleased to be making continual and rapid progress at Minim Martap as it works toward the start of mining and its first shipment target of the fourth quarter of this year.

He says Canyon’s operational and infrastructure workstreams are advancing well, adding that the company remains focused on delivering this milestone on schedule and transitioning its “long-life Minin Martap project into an operating asset and Canyon as a producer of high-quality bauxite ore".

Importantly, he notes that Canyon will be producing and shipping bauxite before the end of this year, establishing its position as a supplier of this critical mineral to global markets.

“We are committed to building on that foundation as we progress funding discussions to support the ramp-up of production,” says Secker.