Key Takeaways:
Canyon Resources Ltd. (ASX: CAY) has moved to secure its supply chain by increasing its stake in Cameroon's rail operator to 26.9% and acquiring 42.8% of the Douala port operator, de-risking its path to first bauxite production in late Q3 2026.
"By increasing our stake in Camrail to 26.9% and executing a strategic 42.8% investment in Terminal Bois du Port de Douala S.A. which operates the Port of Douala, Canyon is securing direct influence over the critical rail and port infrastructure that underpins our operations," Chief Executive Officer Mr Peter Secker said.
The company paid XAF 9.852 billion (approximately A$23.8 million) to increase its equity in Camrail from a previous 9.1% holding. To further solidify its export route, Canyon also completed a CFA 347.447 million (approximately A$0.8 million) strategic investment for a 42.8% stake in the port operator, Terminal Bois du Port de Douala S.A. (TBPD).
These investments are critical as Canyon prepares for its first bauxite shipment in late September 2026. The company aims to capitalize on its Minim Martap Bauxite Project's high-grade ore reserve of 144 million metric tons at 51.2% alumina, which ranks among the world's richest bauxite deposits.
The increased stake in Camrail strengthens Canyon's ability to coordinate and align with developments relating to the rail line's PQ2 upgrade, while also securing timely transportation slots for its bauxite. The investment in the Port of Douala operator complements an existing Port Access Agreement, giving Canyon direct influence over site layout, construction, and production metrics to ensure a seamless infrastructure network from mine to port.
"These are strategic, high-impact investments that reinforce our integrated logistics strategy, support the efficient ramp-up of Minim Martap, and position the Project for a long and reliable operating life," Secker added.
Development at the Minim Martap project is advancing, with trial mining commencing in mid-Q2 2026 to build stockpiles at the mine, an inland rail facility, and the port. Infrastructure work is proceeding, with tracklaying underway at the rail facility and earthworks progressing at the Port of Douala.
The first seven locomotives are expected to arrive in late Q2 2026, with rail wagons following in July, ahead of the first bauxite ore shipment scheduled for late September 2026. Canyon is also engaging with potential offtake partners and expects to finalize a feasibility study for a proposed alumina refinery by Q3 2026.
This article is for informational purposes only and does not constitute investment advice.
