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Canyon Resources Ltd (ASX:CAY) is confident that extensive rail upgrade work in Cameroon will help facilitate the delivery of its world-class Minim Martap Bauxite Project.
Upgrades of 13 rail bridges have been completed with work on an additional 55 bridges underway and due to be completed in 2021.
This upgrade work forms a part of a five-year infrastructure renewal program agreed between the Cameroon Government and Camrail SA, a subsidiary of Bolloré Transport & Logistics.
Camrail operates the existing rail network that passes about 50 kilometres from Canyon’s Minim Martap project.
“Supports timely delivery”Canyon Resources managing director Phillip Gallagher said: “Canyon Resources is very pleased to see the success and progress of the ongoing upgrades to the Camrail rail network.
“The rail upgrade program and positive engagement with Camrail in Cameroon and Bolloré internationally supports the timely delivery of the Minim Martap Bauxite Project.”
Key towns highlighted along the Camrail line.
Bridge upgrade programAs part of a program to modernise railway infrastructure, the Cameroon Government initiated a A$10 million project to upgrade rail bridges.
Under this program, and with the contribution of the World Bank, Camrail organised on behalf of the government the upgrade of 12 steel bridges on the line between Yaoundé and Ngaoundéré and the Edéa railway bridge on the line between Douala and Yaoundé.
In February 2020 Camrail also launched upgrade work on a further 55 railway bridges, including metal bridges and reinforced-concrete slab bridges.
Upgrade work on these additional bridges across the entire rail network is due to be completed in 2021.
Camrail director of fixed installations Hamadou Bakary said: “The upgrades of these railway bridges will increase the circulation speed of trains on these works, improve rail traffic safety and reduce the journey times of the rail transport of people and goods.”
Rail track renewalUnder the program, 330 kilometres of rail track has also been renewed and 1,671 hydraulic structures have been refurbished while reinforcement work has been carried out on 500 kilometres of track.
With the support of the World Bank, the European Investment Bank, the French Development Agency and the European Union, the Cameroon Government and Camrail are finalising plans to renew a further 585 kilometres of track.
This plan includes track between Douala and Yaoundé and between Belabo and Ngaoundéré.
Minim-Martap projectCanyon Resources is focused on developing its 100%-owned Minim-Martap Bauxite Project initially as a direct shipping ore (DSO) project development opportunity.
The project is adjacent to the main rail line linking the region to the Atlantic port of Douala and the rail line is currently underutilised.
The rail line runs to the east of Canyon’s projects.
This rail line along with the existing port supports a low capex, low opex solution to deliver high-grade, low-contaminant, seaborne bauxite to the region’s growing aluminium industry.
The Cameroon Government is planning a rail extension and is undertaking rail line debottlenecking upgrades, giving the long-term potential for export through the newly built, deep-water port of Kribi.
Canyon has chalked out a two-stage program for developing the bauxite project.
In the first stage, it plans to export through the port of Douala utilising the existing rail and port infrastructure and in the second stage, it will utilise proposed new rail line and the port of Kribi to increase export tonnage.
This article first appeared on www.proactiveinvestors.com.au
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