Canyon Resources Ltd (ASX:CAY) has received interest from companies looking to secure long-term bauxite supply and who acknowledge the scale and quality of its Minim Martap Bauxite Project in Cameroon, West Africa.
This interest stems from the appointment in March of a new chief development officer in Rick Smith, who has connected the company with potential strategic offtake, equity and development partners.
Smith, who is well known within the bauxite, alumina and aluminium industries following his success as project director for the US$1.4 billion GAC bauxite mine in Guinea, has introduced Canyon to senior decision-makers within some of the worlds leading and largest bauxite, alumina and aluminium producers.
Bulk shipping samples
Managing director Phillip Gallagher said: “The project has been well received by major organisations within the bauxite, alumina and aluminium industry, with many expressing an interest to be involved in the project as partners with Canyon.
“Some of the parties requested the opportunity to conduct independent analysis on the Minim Martap bauxite.
“We are currently shipping representative bulk samples to their nominated laboratories.”
“Strategic long-term offtake”
Ongoing data sharing and positive dialogue following Canyons meetings with potential strategic partners, including groups planning construction of new alumina refineries, has highlighted the strategic value of the anticipated product quality from Minim Martap as well as the opportunity for strategic geopolitical diversification from existing supply jurisdictions.
Gallagher said: “The Minim Martap Project has the capacity to export a large quantity of the worlds highest grade bauxite with extremely low silica, with a stable grade profile for many decades making the project a strategic long-term option for alumina producers looking to secure long-term, high-grade offtake.
“With approximately 50% of all global seaborne bauxite currently being exported from Guinea, and more than half of Chinas bauxite imports also coming from Guinea, we believe that major alumina producers are now considering Cameroon bauxite from Minim Martap as a geopolitical hedge and a means of diversifying the concentration of supply of the West African very high-grade bauxite and reliance on one country.”