Canyon Resources Locomotives Arrive, Bauxite Shipment Target Set

Canyon Resources (ASX: CAY) has taken delivery of locomotives for its Minim Martap bauxite project in Cameroon, a concrete step toward the mine-to-port logistics chain required before first shipment.

The first 60 rail wagons have left the factory and are scheduled to arrive in Douala in mid-August. A further 100 wagons are due late in the September quarter. The locomotives, delivered to Canyon's in-country subsidiary Camalco Cameroon SA in June, now enter a six-week phase of commissioning, testing, and operator training.

Mining at Minim Martap is scheduled to begin in the September quarter. First bauxite shipment from the Port of Douala remains targeted for the December quarter. The timeline hinges on completing the ore haulage road, inland rail facility, and port dredging, all scheduled for completion late in the September quarter.

The rail logistics update follows Canyon's increase in its equity stake in Camrail, Cameroon's primary rail operator, from 9.1% to 26.9%. The company expects the 160-wagon fleet to provide transport capacity of roughly 35,000 wet metric tonnes (wMt) per month. That capacity underpins the initial production ramp and export schedule.

Canyon is seeking to finalise US$160 million in additional funding for the Stage 2 development phase. That includes upgrades to sections of rail infrastructure and delivery of a further 15 locomotives and 400 wagons. The expansion would lift transport capacity to approximately 105,000 wMt per month by early in the September quarter of 2027. Canyon considers the larger rail package central to its strategy of progressively scaling production.

The trial mining planned for the September quarter will allow Canyon to establish operational readiness, optimise mining procedures, and build ore stockpiles before first shipment. The company expects mining to reach required production rates ahead of logistics commissioning, reducing the risk that ore availability becomes a constraint on the initial export schedule.

Managing director Peter Secker said Canyon was continuing to advance Minim Martap toward its first shipment target. "Our operational and infrastructure workstreams are advancing well, we remain focused on delivering this milestone on schedule and transitioning our world class, long-life Minim Martap Project into an operating asset and Canyon as a producer of high-quality bauxite ore."

"Canyon will be producing and shipping bauxite before the end of 2026, establishing our position as a supplier of this critical mineral to global markets," Secker said. "We are committed to building on that foundation as we progress funding discussions to support the ramp-up of production."

Canyon also confirmed non-executive chair Mark Hohnen will retire as chair and director effective 25 August. Hohnen's tenure included delivery of the critical mining licence and the development work that positioned Minim Martap as a near-term operational asset. "The project would not be where it is today without Mark's dedication and influence," Secker said.

For a stock trading on operational milestones, the next six weeks carry weight. The commissioning and testing phase will show whether the locomotives and wagons perform to specification. The mid-August arrival of the first wagon batch and the late-September timing of the rail facility completion are the next concrete markers. If those dates slip, the December shipment target tightens. If they hold, the logistics chain starts to look more than theoretical.