Cameroon has signed a major bauxite mining agreement worth at least $2 billion with Camalco, a subsidiary of the Australian company Canyon Resources. This deal is a significant step in Cameroon’s ambition to become an upper middle-income country by 2035.
The project, located at the Minim-Martap mine in northern Cameroon, will cover nearly 500 square kilometers (123,550 acres). Camalco will oversee the direct shipping ore (DSO) project, which involves mining bauxite from the Beatrice, Raymonde, and Danielle plateaux.
The initial 20-year agreement specifies that Camalco will extract 99.1 million metric tons of bauxite, characterized by 51.6% alumina and 2.4% silica. The high-grade, low-contaminant bauxite deposit is expected to support industrial production at a rate of approximately 5 million tons annually over two decades.
The bauxite will be processed into alumina and transported using an existing railway line through Ngaoundere, Yaounde, and Douala to the Port of Douala or the Port of Kribi for export. Camalco will also construct mining facilities, road infrastructure, and upgrade the existing railway network. Additionally, the company will build an energy production unit, a bauxite processing plant, and dedicated port facilities.
The project is partially funded by Singapore-based Eagle Eye Asset Holdings (EEA), which signed a subscription agreement with Canyon Resources last year.
Rana Pratap Singh, Director General of Camalco, highlighted that the deal represents a crucial milestone in transitioning from concession to mining permit. Singh anticipated that serious mining operations could commence within two years once the permit is secured.
Under the terms of the agreement, the Cameroonian government will retain a 10% stake in all bauxite extracted. The government will also collect state concession fees, ad valorem tax, and receive royalties paid to local communities. The project is expected to create at least 1,000 direct jobs in its first year and make a significant contribution to the national economy. The mining code mandates that 15% of the extracted bauxite must be supplied to the local market.
