ASX-listed Canyon Resources’ in-country subsidiary Camalco Cameroon has increased its equity holding in Camrail from 9.1% to 26.9% through a cash consideration of about A$23.8-million, representing a significant strategic investment in the country’s primary rail transportation company.

This enhanced stake is expected to strengthen the company’s ability to remain closely informed and actively engaged in developments relating to the PQ2 rail upgrade, while also securing timely bauxite transportation slots with Camrail.

The increased involvement is expected to enhance oversight, coordination and strategic alignment with Canyon’s Minim Martap bauxite project, further derisking the company’s mine-to-port logistics chain as it advances toward production.

The increased investment follows Canyon’s initial investment in the rail network operator in the first quarter of 2025 and is expected to complete in the second quarter of this year, following in-country administrative registration of the newly acquired shares in Cameroon.

To further derisk logistics, Canyon, through Camalco, has completed an about A$800 000 strategic investment in Terminal Bois du Port de Douala to obtain a 42.8% stake in the operator of the Port of Douala.

The agreement complements Canyon’s existing port access agreement which grants Canyon the right to export bauxite and alumina, as well as import raw materials essential for mining operations at Minim Martap.

The agreement also provides Canyon with access to the Bois du Port de Douala to evaluate and optimise key logistical solutions in relation to site layout plans, construction requirements and anticipated production metrics to ensure a seamless infrastructure network from mine to port.

“By increasing our stake in Camrail to 26.9% and executing a strategic 42.8% investment in Terminal Bois du Port de Douala which operates the Port of Douala, Canyon is securing direct influence over the critical rail and port infrastructure that underpins our operations,” says Canyon CEO Peter Secker.

“These initiatives significantly enhance coordination, improve operational certainty, and materially derisk our mine-to-port logistics as we move into imminent production.

“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,” he adds.

At Minim Martap, the surface miner was mobilised to site at the Daniel Plateau in April for the start of trial mining, allowing bauxite stockpiles to be built up at the mine, inland rail facility (IRF) and port before the first bauxite ore shipment late in the third quarter.

Initial production will be a major milestone for project and coincides with upgrade works on the haul road that connects the Daniel Plateau to the IRF, Canyon points out.

Tracklaying at the IRF and bulk earthworks at the Port of Douala have started in preparation for rail operations to allow storage of bauxite ores at the port prior to the first shipment.

The first seven locomotives are expected to arrive at the Port of Douala late in the second quarter, followed by the rail wagons in July ahead of first shipment of bauxite ore in late September.

Canyon continues to engage with several potential offtake partners, with the company aiming to finalise agreements following the completion of initial bauxite shipments, allowing it to demonstrate the high grade, high purity of the Minim Martap ore reserve, which comprises of 51% alumina and about 2% silica.

The feasibility study for the proposed value-adding alumina refinery is scheduled to be completed by quarter three.