President Paul Biya has officially awarded Camalco, a subsidiary of Australian Canyon Resources, the permit to exploit the Minim-Martap bauxite deposit. This major mining project, worth $2 billion, is expected to make Cameroon a major player in the global bauxite market. However, experts have reservations about the economic benefits for the country.
Cameroon has taken a decisive step towards exploiting its vast mineral resources. President Paul Biya has signed a decree awarding Camalco, a subsidiary of Australian company Canyon Resources, the exploitation permit for the Minim-Martap bauxite deposit, located in the northern region of the country. The 20-year permit marks the start of a major mining project that is expected to transform Cameroon’s economy and position the country as a leader in the global bauxite market.
According to the Ministry of Mines, Industry and Technological Development, this decree gives Canyon Resources the necessary legitimacy to raise funds and increase its visibility on the national mining scene, where there are still no active bauxite mines. The project, valued at $2 billion, aims to develop 99.1 million tonnes of bauxite, with an expected annual production of 5 million tonnes.
The start of operations is scheduled for 2025, while an on-site ore processing phase should begin in 2027. Around 30% of bauxite production will be processed locally to supply Cameroon’s industries, thus reducing dependence on imports of this ore, the cost of which amounted to 36 billion FCFA in 2023.
To transport bauxite from Makor village to the port of Douala, Camalco will have to rehabilitate the existing railway line and build a quay dedicated to mining exports within nine months of obtaining the permit. With reserves estimated at 2 billion tonnes, the Minim-Martap deposit could place Cameroon among the world’s largest producers of bauxite, alongside Guinea, which holds about two-thirds of the world’s reserves.
However, despite these promising prospects, some experts point out gaps in the agreement signed between Cameroon and Canyon Resources. Youmsi Bareja, a mining and oil expert and professor-researcher, believes that the financial terms of the agreement are disadvantageous for Cameroon. “For a project valued at 2 billion dollars, with a return on investment of 4.5 billion dollars and an operating period of twenty years, Cameroon only received a payment of 1 billion FCFA as a “key money”. Canyon Resources should have paid at least 10 billion FCFA,” he explains.
This criticism reflects a certain skepticism about the real economic benefits for Cameroon. Although the country is engaged in a plan to develop its mining sector, with twelve projects planned between 2024 and 2025, including that of Minim-Martap, the benefits for the local economy and the population remain to be clarified. However, the Cameroonian authorities are optimistic about the impact of this project on the national economy.
By 2029, the global bauxite market is expected to experience sustained growth, from 284.41 million tonnes in 2024 to 342.87 million tonnes, according to Mondor Intelligence forecasts. Cameroon, through the exploitation of Minim-Martap, hopes to take advantage of this dynamic to become a key player in the sector.
