Locomotive Delays Test Canyon’s Minim Martap Production Ambitions

Project Progress Amid Logistical Challenges

Canyon Resources Limited (ASX – CAY) has provided a comprehensive update on the development of its Minim Martap Bauxite Project in Cameroon, reaffirming its commitment to advancing the project despite some logistical setbacks. The company is on track to commission its surface miner in February 2026, a critical step marking the transition from development to active mining operations.

Upgrades to the haul road connecting the Danielle Plateau mining area to the Inland Rail Facility remain on schedule, supporting the planned commencement of ore haulage in the second quarter of 2026. This infrastructure is vital for efficient transport of bauxite to export points, underpinning the project's operational timeline.

Locomotive Delivery Delays Impact Shipment Schedule

However, Canyon has encountered delays in the delivery of locomotives from CRRC Ziyang Co., Ltd, attributed to late component shipments and production downtime during the Chinese New Year period. This has pushed the arrival of the first two locomotives to late Q2 2026, with the remainder expected in Q3. These delays have necessitated a revision of the logistics schedule, moving the maiden bauxite trial shipment to Q3 2026 and full-scale shipments to Q4 2026.

Despite these setbacks, CRRC has confirmed that fabrication continues and mitigation strategies are in place to prevent further delays. Canyon’s management remains focused on maintaining momentum, with the haul road and port dredging activities progressing as planned.

Strategic Ownership and Refinery Feasibility

In parallel, Canyon is advancing discussions to increase its stake in Camrail from 9.1% to approximately 35%, a move expected to conclude in Q1 2026. This increased ownership would enhance Canyon’s influence over the PQ2 rail upgrade, a key component in securing and de-risking the mine-to-port logistics chain.

On the downstream front, the feasibility study for a proposed alumina refinery is progressing well, targeting completion in Q3 2026. This initiative aligns with Canyon’s strategy to add value beyond raw bauxite extraction by integrating further into the aluminium supply chain, leveraging the project's high-grade, low-silica bauxite and favourable operating costs in Cameroon.

Funding and Regulatory Approvals

Financially, Canyon has secured shareholder approval for a significant equity raise of approximately A$70 million, with further approvals sought in a March 2026 general meeting for an additional A$100 million placement. These funds are critical to sustaining project development and operational ramp-up. Regulatory approvals from regional financial and governmental bodies are progressing, reflecting the project's strategic importance within the Central African Economic and Monetary Community.

CEO Peter Secker emphasised the company’s resilience, noting that while minor delays have adjusted timelines, the project remains on a fast track to production with a strong operational focus in the coming months.