Canyon Resources Boosts Rail Capacity and Logistics Control at Minim Martap

Locomotive Delivery Marks Logistics Milestone

Canyon Resources (ASX:CAY) has taken a significant step towards operationalising its Minim Martap Bauxite Project in Cameroon with the delivery of seven locomotives to its subsidiary Camalco. The locomotives are now undergoing a 6–8 week commissioning and testing program, including brake testing and operator training, positioning the company to commence initial ore transport between the Inland Rail Facility and the Port of Douala.

All seven locomotives have cleared static and dynamic tests, with six completing load testing and the seventh nearing completion. The next phase involves multiple-unit tests and validation by Bureau Veritas before the locomotives can enter service. Meanwhile, the first 60 of 160 rail wagons are scheduled to arrive mid-August 2026, with the remainder due later in the third quarter, supporting a Stage 1 rail fleet capable of transporting approximately 35,000 wet metric tonnes (wMt) per month.

Strategic Investments Strengthen Mine-to-Port Control

In parallel with infrastructure delivery, Canyon has bolstered its influence over critical logistics by increasing its equity stake in Camrail, Cameroon’s national rail operator, from 9.1% to 26.9% for approximately A$23.8 million. This move enhances oversight of rail upgrades and aligns rail transport more closely with the Minim Martap project’s needs.

Further securing export logistics, Canyon acquired a 42.8% stake in Terminal Bois du Port de Douala S.A., the operator of the Port of Douala, complementing its existing port access agreement. These investments collectively de-risk the mine-to-port supply chain, a crucial factor for timely bauxite shipments.

Mining Mobilisation and Infrastructure Progress

The company has mobilised surface mining equipment to the Daniel Plateau, with trial mining set to commence once land compensation discussions with local communities conclude. This trial phase aims to establish operational readiness and build bauxite stockpiles ahead of logistics commissioning, mitigating risks of ore supply constraints.

Tracklaying at the Inland Rail Facility and earthworks at the Port of Douala are underway, with construction on schedule for completion in late Q3 2026. These developments underpin the project’s first ore shipment target, which remains on track within the ~US$96 million Stage 1 capital expenditure budget outlined in the Definitive Feasibility Study.

Funding and Takeover Bid Dynamics

Financially, Canyon holds A$46 million in cash and US$65 million in undrawn debt under a US$140 million facility with AFG Bank Cameroon. The company is actively exploring additional funding options to complement this facility and fully support capital expenditure through to Stage 1 completion and first shipment.

Post-quarter, Canyon received a conditional off-market takeover bid from its majority shareholder A2MP Investments FZCO for all outstanding shares it does not already control. The Canyon board is reviewing the Bidder’s Statement and advises shareholders to take no action until a formal recommendation is issued.

Upcoming Milestones and Project Outlook

Looking ahead, the arrival of the first rail wagons in Douala is scheduled for mid-August 2026, a critical step towards operationalising the rail logistics chain. The feasibility study for a proposed alumina refinery is also progressing as planned, potentially adding downstream value to the project.

Stage 2 rail development, which would increase transport capacity to 105,000 wMt per month and support a 2.1 million wMt annual production rate by 2029, depends on securing approximately US$160 million in additional funding. Canyon plans to provide upfront financing for railway upgrades, with reimbursement expected through government offsets, though this remains contingent on final funding arrangements.