Cameroon has signed a bauxite mining agreement with an Australian mining company
July 31, 2024
Cameroon signed a bauxite mining deal worth at least $2 billion with a subsidiary of Australia's Canyon Resources on Tuesday, foreign media reported.
Under the preliminary 20-year agreement, Camalco, a subsidiary of Canyon Resource in Cameroon, will undertake a direct ore shipment (DSO) project at the Minim-Martap mine in northern Cameroon, which covers an area of nearly 500 square kilometers (123,550 acres). That is, 99.1 million metric tons of bauxite with proven reserves will be mined in Beatrice, Raymonde and Danielle plateaues. According to the detection, the content of alumina in the mine is 51.6%, and the content of silica is 2.4%. It is estimated that about 5 million tons of bauxite could be produced annually for 20 years.
Camalco will process the bauxite into alumina and transport it via existing rail lines through the cities of Ngaoundere, Yaounde and Douala to the ore terminals at the ports of Douala or Kribi for export.
Camalco will build the mine and other mining facilities used in actual mining operations, as well as road infrastructure from the mining site to the rail loading and unloading terminals, and invest in retrofitting the existing rail network. In addition, energy production facilities, alumina refining facilities and dedicated port facilities will be built.
Singapore-based Hawkeye Capital Holdings (EEA) signed a subscription agreement with Canyon Resources last year to help fund the project.
Under the agreement, the Cameroonian government has a 10% share of the bauxite mined. In addition, mining regulations stipulate that a 15% share of mined raw materials must be supplied to the local market.
