What is the story about?
What's Happening?
Caisse Nationale de Prévoyance Sociale (CNPS), Cameroon's public pension fund, is in advanced discussions with Canyon Resources Limited regarding a potential investment of nearly $36 million in the Minim-Martap bauxite project. This investment could be converted into equity in either Canyon's local subsidiary, Camalco Cameroun S.A., or the parent company. The CNPS aims to finalize internal approvals by the end of 2025 to avoid project delays. This move is part of Canyon Resources' strategy to mobilize local capital for the project, which has already secured a $140 million loan from AFG Bank Cameroun.
Why It's Important?
The potential investment by CNPS signifies growing interest from Cameroonian financial institutions in local mining projects. This could enhance the country's capacity to manage mining public-private partnerships and overcome administrative challenges. The Minim-Martap project is projected to have a significant economic impact, with a net present value of $835 million and an average pre-tax return margin of 29%. The project is expected to boost local employment and infrastructure development, contributing to Cameroon's economic growth.
What's Next?
If the CNPS investment materializes, it will join other stakeholders like Afriland Bourse & Investissement and AFG Bank, indicating a robust local financial backing for the project. The arrival of locomotives and ore transport wagons is expected in January 2026, with production and exports slated for the first half of 2026. A feasibility study on alumina exploitation is also anticipated, which could further enhance the project's value.
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