09/03/2024
Cameroon has signed a bauxite mining agreement valued at over $2 billion with a subsidiary of Australia-based Canyon Resources, as part of its ambition to achieve upper middle-income status by 2035.
The Cameroonian subsidiary, Camalco, will undertake the Direct Shipping Ore (DSO) project at the Minim-Martap mine in northern Cameroon, spanning nearly 500 square kilometers (123,550 acres).
“We have finally realized the long-awaited Minim-Martap project, which has been known in theory, into reality,” said Fuh Calistus Gentry, Cameroon’s interim mines minister, during the signing ceremony.
Under an initial 20-year agreement, Camalco will develop the Beatrice, Raymonde, and Danielle plateaux in northern Cameroon to mine 99.1 million metric tons of proven bauxite reserves, containing 51.6% alumina and 2.4% silica.
This high-grade, low-contaminant bauxite deposit is suitable for industrial production, with an expected annual output of around 5 million tons over the next 20 years.
Camalco will process the bauxite into alumina and transport it via an existing railway line through Ngaoundere, Yaounde, and Douala to the Port of Douala or the ore terminal at the Port of Kribi for export.
The company will also construct the mine, related mining facilities, road infrastructure from the extraction site to the rail loading station, and invest in the rehabilitation of the existing railway network.
Additionally, Camalco will establish an energy production unit, a facility to process bauxite into alumina, and dedicated port facilities.
Singapore-based Eagle Eye Asset Holdings (EEA) is providing funding support for the project, following a subscription agreement with Canyon Resources last year.
Rana Pratap Singh, Camalco’s director general, described the deal as a significant milestone in the transition from a concession to a mining permit.
“Once we secure the mining permit, our activities will proceed with greater investor confidence,” he stated, adding that serious mining operations could commence in two years.
Under the agreement, the Cameroonian government will hold a 10% stake in all bauxite extracted. The government will also receive state concession fees and ad valorem taxes, while the mining company will pay royalties to local communities.
The project is expected to create at least 1,000 direct jobs in its first year of production and make a significant contribution to the national economy, according to the interim mines minister.
Cameroon’s mining code requires that 15% of the raw materials extracted must be supplied to the local market.
