How Canyon’s $835M DFS Transforms Minim Martap into a Tier-One Bauxite Giant

Definitive Feasibility Study Validates Scale and Quality

Canyon Resources Limited has released a comprehensive Definitive Feasibility Study (DFS) for its flagship Minim Martap Bauxite Project in Cameroon, confirming the project’s status as a tier-one bauxite operation. The DFS reveals a 33% increase in Direct Shipping Ore (DSO) grade ore reserves to 144 million dry metric tonnes, boasting a premium alumina grade of 51.2% and low silica content of 1.7%. This quality positions Minim Martap’s product at the upper end of the global bauxite market, commanding a long-term price premium of up to US$11 per tonne over the Guinea standard.

Robust Economics and Phased Development

The project economics are compelling, with a pre-tax net present value (NPV) of US$835 million and an internal rate of return (IRR) of 29%. Capital expenditure is staged to manage upfront costs, with an initial US$96 million required to reach first ore shipment targeted for the first half of 2026. Production is planned to ramp from 1.2 million wet metric tonnes in year one to 10 million tonnes by year six, aligned with the planned PQ2 rail upgrade. This phased approach leverages existing rail capacity to fast-track development while controlling capital intensity.

Infrastructure and Strategic Partnerships

Key to the project’s low capital cost strategy is the use of existing infrastructure, including rail and port facilities. Canyon has secured a 9.1% equity stake in Camrail, the rail operator, ensuring strategic influence over the critical PQ2 rail corridor upgrade funded by the World Bank with US$818 million. This upgrade, scheduled for completion by 2030, will enable full-scale transport of bauxite from the mine to the Port of Douala for export. Early works are underway, including haul road upgrades, Inland Rail Facility construction, and procurement of locomotives and wagons.

Funding and Market Outlook

Funding for the initial development phase is secured through a US$140 million debt facility with AFG Bank Cameroon and equity injections from cornerstone investor Eagle Eye Asset Holdings. The project benefits from a supportive local community and a favorable regulatory environment, with a 20-year mining permit already granted. Market analysis forecasts a structurally higher bauxite price environment over the medium term, driven by rising costs in Guinea, the world’s largest bauxite exporter, positioning Minim Martap to capitalize on growing demand, particularly from China.

Environmental and Social Considerations

Comprehensive Environmental and Social Impact Assessments have been conducted across the mine site, haul road, rail, and port areas to comply with national and international standards. The project is expected to employ predominantly local labor, contributing to regional economic development. Canyon is actively engaging with government authorities and stakeholders to expedite remaining approvals and ensure sustainable project execution.