Name of the Project
Minim Martrap bauxite project.

Location
Central Cameroon.

Project Owner/s
Canyon Resources.

Project Description
A prefeasibility study (PFS) has confirmed the project’s ability to produce high-quality, low-contaminant bauxite over a long mine life of at least 20 years through a multistage development.

The project is underpinned by a large, shallow mineral resource of more than one-billion tonnes.

It has a maiden ore reserve of 97.30-million tonnes grading 51.10% aluminium oxide and 2.30% silicon dioxide. In October 2020, Canyon increased the mineral resource estimate for the project to more than one-billion tonnes. The new resource estimate followed the integration of results from the physical testing programme.

Canyon is planning the development of the project as a two-stage, two-port execution programme.

The PFS envisages a Stage 1 mining and direct shipping ore (DSO) export operation of five-million tonnes a year, exported through the Douala port and using existing infrastructure to provide an economic and faster startup. This capacity has been identified through the optimisation of rail schedules, integrating the mine development with ongoing in-country rail upgrades and allocating a more efficient rail fleet.

The mine will begin at four-million tonnes a year before ramping up to five-million tonnes a year, in line with the rail axle load increase from 17 t to 20 t an axle, which is part of the ongoing rail upgrades currently under construction by the Cameroon government.

The mine design, upon which the ore reserve estimate is based, comprises simple, edge-to-edge strip mining and openpit, resulting in very low structural geotechnical risk.

Stage 1 provides a foundation that allows for the ongoing operation of the mine through the potential Stage 2 development. The completion of Stage 2 is expected to provide increased tonnage and lower operating costs by shipping through the Kribi deep-water port.

The project is expected to use existing rail networks and integrate with rail upgrades currently under way, increasing the probability of a rapid startup.

Potential Job Creation
About 650 direct local jobs are expected to be created during operations, with more expected in indirect employment through supporting industries.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of $291-million and an internal rate of return of 37%.

Capital Expenditure
The project will require development capital of $119-million.

Planned Start/End Date
A final investment decision is expected to be made in the second half of 2021.

On-site construction is expected to start during the second half of 2022, with operations expected to start in mid- to late 2023.

Latest Developments
Canyon Resources has negotiated the key terms for the Minim Martap mining convention with the government of Cameroon, while also delaying the release of its bankable feasibility study (BFS) for the project until this month.

The company has identified some material opportunities to optimise the BFS and improve the project efficiency and economics, which has necessitated additional time to complete the study.

Detailed rail optimisation studies have forecast significant improvements to the capacity of the rail line, while updated train simulation modelling has predicted an increase of 20% in rail traffic capacity on the existing rail line.

Separately, on-going negotiations with the Douala Port Authority and Camrail have identified an alternative rail unloading and barge loading solution at the port that will facilitate operations and easily accommodate future increases in production.

Parallel to the railway studies, China Minmetals Corporation developed the mining schedule, haul road, inland rail facility and port designs. The company is now revisiting the mining schedule and designs to ensure capital and operating costs accurately reflect the project’s increased throughput in line with the increased rail capacity identified.

Meanwhile, Canyon has completed the fourth round of government negotiations for the Minim Martap mining convention, and a formal execution of the convention is now expected in the first quarter of this year.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Canyon Resources, tel +61 8 6382 3342 or email info@canyonresources.com.au.