MINIM-MARTAP BAUXITE : CNPS plans to invest over CFAF 20 billion in the project

(LVDE) – In advanced negotiations with Canyon Resources Limited, Cameroon’s National Social Insurance Fund (CNPS) is planning a USD 36 million investment in the Minim-Martap bauxite project. This move could mark a turning point for Cameroon’s mining sector, with significant implications for local investment.

In an economic context where mining is emerging as a key driver of development, CNPS is preparing to take a decisive step. According to reliable sources, CNPS is in advanced talks with Canyon Resources Limited, the Australian company managing the exploitation of the Minim-Martap bauxite deposit. The investment, estimated at USD 36 million (about CFAF 20.2 billion), would be aimed at strengthening the capital of Camalco Cameroon S.A., Canyon’s local subsidiary.

The negotiations, if concluded, will require the approval of several regulatory bodies. As a public institution, CNPS must proceed cautiously, completing the required steps by the end of 2025 to avoid delaying the project’s timeline. This process is an important test for Cameroonian public institutions, assessing their ability to navigate public-private partnerships in the mining sector.

Canyon Resources has already taken steps to mobilize local financing to support mine development. The company secured a USD 140 million loan from AFG Bank Cameroon to fund essential infrastructure for the project. Meanwhile, Afriland Bourse & Investissement, a subsidiary of Afriland First Bank, subscribed to a USD 70 million capital raise (about CFAF 25.8 billion). Subject to regulatory approval, this transaction could give Afriland around 10.1% ownership of Canyon Resources.

A potential CNPS stake would align with the growing interest of Cameroonian financial institutions in the Minim-Martap project. However, the structure of CNPS’s investment will be critical. Investing in Camalco Cameroon would provide direct exposure to local mining operations, while investing in Canyon Resources would mean exposure to capital increases, with the risk of dilution in the face of better-capitalized investors.

Documents provided by Canyon describe Minim-Martap as a strategic global asset. The feasibility study, released on September 2, 2025, values the project’s net present value at USD 835 million, with a pre-tax profit margin of 29% and estimated annual cash flows of USD 174 million. The reserves, with an alumina grade of 51% and silica content of 2%, could command a price premium of USD 10 to 15 per ton compared to global benchmarks.

Global bauxite demand, growing at an annual rate of 3.5%, is driven by the rising use of aluminum in electric vehicles and renewable energy. Moreover, existing infrastructure, such as the railway linking Minim-Martap to the Port of Douala, facilitates ore transport.

However, caution remains. Canyon Resources notes that its forecasts are based on assumptions that could be affected by lower-than-expected ore grades, environmental risks, or infrastructure constraints. Key milestones are imminent, with the arrival of the first locomotives and wagons for ore transport expected in January 2026, alongside the launch of production and the first exports during the first half of 2026.

Esther Grace