CAMEROON has entered into a landmark $2bn agreement with Camalco, a subsidiary of the Australian-based Canyon Resources, to develop the Minim-Martap bauxite mine. This significant deal marks a pivotal step in Cameroon’s ambition to become an upper middle-income country by 2035.
The contract was officially signed on Tuesday, with interim mines minister Fuh Calistus Gentry highlighting the fruition of long-standing plans for the Minim-Martap mine, which spans nearly 500 square kilometres in northern Cameroon.
Under the initial 20-year agreement, Camalco will focus on the Beatrice, Raymonde, and Danielle plateaux to extract 99.1 million metric tons of proven bauxite reserves. These reserves boast a high alumina content of 51.6 percent and low silica contamination of 2.4 percent, making them ideal for industrial production. The project aims to produce around 5 million tons of bauxite ore annually over two decades.
The extracted bauxite will be processed into alumina and transported via an existing railway network through Ngaoundere, Yaounde, and Douala to the Port of Douala or the ore terminal at the Port of Kribi for export. Camalco will also invest in the development of mining facilities, road infrastructure, and the rehabilitation of the railway network.
Additionally, the company plans to establish an energy production unit, an alumina processing unit, and dedicated port facilities. Singapore-based Eagle Eye Asset Holdings is funding the project, following a subscription agreement with Canyon Resources last year.
Rana Pratap Singh, Director General of Camalco, described the deal as a crucial milestone in obtaining a mining permit, which will boost investor confidence and expedite the project’s progress. Mining operations are expected to commence within two years.
The agreement stipulates that the Cameroonian government will own 10 percent of all extracted bauxite and receive state concession fees and ad valorem tax. The mining company will also pay royalties to local communities. The project is anticipated to generate at least 1,000 direct jobs in its first year and significantly boost the national economy.
Furthermore, Cameroon’s mining code mandates that 15 percent of the extracted raw material be supplied to the local market, ensuring that the benefits of the mining operations extend to domestic industries.
This strategic partnership with Canyon Resources not only promises substantial economic benefits but also underscores Cameroon’s commitment to leveraging its natural resources for sustainable development and economic growth.
