ASX-listed Canyon Resources has said its Minim Martap bauxite project, in Cameroon, is transitioning into the mining phase, with commissioning of the surface miner scheduled for February, while minor logistics delays have pushed the first trial bauxite shipment to the third quarter.

In a development update on February 6, the company said the February commissioning of the surface miner would mark a key operational milestone as the project moves from development into active mining.

The start of ore haulage from the mine is expected in the second quarter, supported by upgrade works on the haul road connecting the Danielle Plateau to the inland rail facility (IRF), which the company said remained on schedule.

Canyon said it had been advised by CRRC Ziyang that the delivery of its locomotive fleet would be delayed. The revised timetable followed the late delivery of certain long-lead components, combined with production downtime associated with the Chinese new year holiday period.

Under the updated schedule, two locomotives were now expected to be shipped for delivery to the Port of Douala late in the second quarter, with the remaining locomotives to follow in the third quarter. CRRC had confirmed that fabrication was otherwise progressing and that mitigation measures were being implemented to minimise further schedule impacts, Canyon said.

As a result of the revised locomotive delivery schedule, Canyon said it had refined its logistics sequencing. The maiden bauxite trial shipment was now targeted for the third quarter, subject to confirmation of final delivery dates from CRRC.

Full-scale bauxite shipments are scheduled to start in the fourth quarter, following commissioning and ramp-up activities.

The company further noted that its port and shipping-related workstreams were continuing in parallel. Canyon said final tenders for dredging the access channel at the Port of Douala were under review, with works expected to begin late in the first quarter.

Transshipping tenders are also being evaluated, with contractor selection and contract award scheduled for the first quarter.

The company said discussions with Camrail to increase Canyon’s investment from 9.1% to about 35% were well progressed, with completion expected in the first quarter. Canyon said the increased stake would enable greater participation in the PQ2 upgrade and further strengthen and derisk its mine-to-port logistics strategy.

Canyon also provided an update on its downstream plans, saying the feasibility study for a proposed alumina refinery was progressing and remained on schedule. The study was based on the project’s low-silica, high-grade bauxite and the cost benefits of operating in Cameroon, with completion targeted for the third quarter.

The company said the study supported its strategy of positioning itself as an integrated participant in the global aluminium value chain.

On the funding side, Canyon said shareholders approved an equity raise of about A$70-million at the AGM held in November last year. The raise formed part of Tranche 2 of a placement announced in September to Afriland Bourse & Investissement. The company said it would seek shareholder approval at a general meeting, scheduled for March 9, to extend the previously received shareholder approval.

Following shareholder approval, Canyon said the placement to Afriland would remain subject only to approvals from the Banque des États de l'Afrique Centrale, the Commission de Surveillance du marché financier de l’Afrique Centrale and the government of Cameroon, which the company said were progressing.

The remainder of Tranche 2, comprising a placement of A$100-million to Eagle Eye Asset Holdings, remains subject to shareholder approval, which will also be sought at the upcoming general meeting. If approved, the settlement of this tranche is expected in the second quarter.

“While minor delays to the locomotive delivery schedule have slightly impacted the project timetable, the Minim Martap project is maintaining its fast-track strategy to be in production and making the initial trial bauxite shipment by the third quarter.

“Our first major milestone of commencing mining operations in quarter one, the build-up of the operations team in Cameroon and haulage of ore to the IRF remain the focus of the project team over the next three months,” Canyon CEO Peter Secker said.