THE BOURSE WHISPERER: Canyon Resources (ASX: CAY) reported that the Government of Cameroon has completed a rail study involving a link between the company’s Minim Martap bauxite project to the Kribi Deep Water Port.
Canyon Resources said an independent Feasibility Study for the construction of a rail line from Edea to Kribi Port, was completed for the Government of Cameroon by Studi International.
The Feasibility Study focused on a long-term solution for Cameroon’s rail infrastructure linking different parts of the country to the existing rail and ports.
Canyon has engaged with Studi International to gain an insight into the study and the technical aspects of the proposed rail upgrade and development process.
Canyon and Mota-Engil Africa will work together to apply the outcomes of this study to the requirements for Minim Martap.
The Cameroon government has called for tenders to manage the railway infrastructure and develop models for possible Public-Private Partnership financing and operation of the rail line.
Canyon Resources said the tender aims to finalise the financial model for operating the existing Camrail upgraded rail line as well as an extension to the Kribi Port and other potential rail infrastructure.
Canyon Resources managing director Phillip Gallagher said in the company’s announcement to the Australian Securities Exchange.
“It’s pleasing to see the Cameroon Government progressing its rail network to a level that will potentially provide the infrastructure required for Canyon to transport bauxite product from our globally significant project at Minim Martap to the Kribi Port.
“We will continue to work with the Cameroon government and Camrail to ensure the best possible outcome for the rail network, as it is an important piece in unlocking the potential of our Tier 1 bauxite resource at Minim Martap.”