Canyon Resources has inked a strategic partnership agreement and memorandum of understanding (MoU) with global mining giant Metallurgical Corporation of China (MCC) for the development of the Minim Martap bauxite project, in Cameroon.
Canyon MD Phillip Gallagher announced the partnership and said MCC, through Zhongye Changtian International Engineering Corporation of MCC (MCC-CIE), would offer necessary assistance to Canyon in facilitating the off-taking and financing for the project in China. MCC will also provide all necessary support to assist Canyon in technical, business off-taking and financial related issues.
“Canyon has worked with MCC-CIE since late 2020 on the bankable feasibility study (BFS) for the Minim Martap project and the signing of this Strategic Partnership and MoU is a very positive next step,” Canyon MD Phillip Gallagher said.
“Executing the MoU with MCC-CIE is a testament to the sound relationship Canyon and MCC-CIE have established in a relatively short space of time, and MCC-CIE will introduce real options for project financing and offtake. It is a great benefit to Canyon to have a strategic partner with extensive experience in building and operating mining projects in Africa.
“MCC-CIE is part of the MCC and Minmetals group of companies that own and operate mines across various commodities, alumina refineries and aluminium smelters. They know the Minim Martap project very well due to their ongoing involvement with the BFS. It is exciting to have a technical and financial partner of the scale and calibre of MCC-CIE offering to substantially increase its involvement in the project, thereby confirming MCC-CIE’s endorsement of the Minim Martap project and Cameroon as a whole,” he added
A 2020 prefeasibility study into the project estimated that it would cost some US $120-million to develop. The study reviewed the technical and commercial solutions for Stage 1 of a two-stage development plan, which consists of a mining and direct shipping ore export operation averaging some 5-million tonnes a year exporting through the existing Douala port.