Bauxite developer Canyon Resources has announced they will delay with the release of its bankable feasibility study (BFS) for the Minim Martap Bauxite project in Cameroon until January.
The company has further has negotiated the key terms for the Minim Martap mining convention, with the government of Cameroon, and 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% 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 anticipated for the first quarter of next year.
“We are very pleased with the positive outcome of the negotiations and are appreciative of the Ministry of Mines hosting the very productive discussions over the past few weeks. It is clear that all sides involved see the short- and long-term benefits of the Minim Martap bauxite project to the State of Cameroon and there is a positive intent to see the project developed,” said MD Phillip Gallagher.
“Having completed this important step with the State of Cameroon, the company can now enter into binding rail and port agreements as well as advance project financing and strategic partner discussions.”