CAY - Locomotives arrive in country - first bauxite shipment now targeted for Q4 2026
Our bauxite Investment Canyon Resources (ASX: CAY) just confirmed that the locomotives for its Minim Martap Bauxite Project have been delivered to Cameroon.
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CAY is developing the Minim Martap Bauxite Project which is one of the world's highest grade bulk bauxite deposits - the project has an 1.102BN tonnes JORC resource.
And an Ore Reserve of 144Mt at 51.2% alumina - enough for ~20 years of mining.
Here's what CAY announced today:
- The locomotives have been delivered to its in-country subsidiary, Camalco
- The first 60 rail wagons have shipped (arriving mid-August); the remaining 100 due late Q3
- A 6-8 week commissioning, testing and operator training program is to follow
- Trial mining to start in Q3 2026
- First bauxite shipment targeted for Q4 2026
- US$160M funding is being aimed for which will be put towards logistics expansion
The locomotives are probably one of the most important parts of the logistics chain for CAY’s project - they will be hauling CAY’s bauxite ~800km to the Port of Douala for export.
This gives it more of a say over bauxite transport giving it more control on the mine-to-port logistics chain.
With the locomotives now in country, CAY will run a 6-8 week commissioning, testing and operator training program ahead of the wagons arrival.
This will set up the line for the first ore movements between the Inland Rail Facility (IRF) and the Port of Douala in Q3.
This Stage 1 fleet of 7 locomotives and 160 wagons is expected to move ~35,000 wMt (wet metric tonnes) of bauxite per month.
Scaling beyond that needs more money and CAY flagged the funds required for a Stage 2 expansion today.
This planning includes rail upgrades plus another 15 locomotives and 400 wagons which would lift capacity to ~105,000 wMt per month by early Q3 2027.
That is subject to finalising a further US$160M (without it, production stays at ~35,000 wMt per month).
Trial mining is now expected to start in Q3 2026 (subject to final discussions with local communities), letting CAY build up ore stockpiles ahead of first shipments.
CAY also confirmed that the ore haulage road, the IRF and the port dredging are all due to wrap up late in the September quarter - clearing the way for first bauxite shipment in Q4 2026.
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What’s next for CAY?
The key catalysts we will be looking out for over the coming months are:
- 🔲 An offtake deal that locks in a sale price for CAY’s product (keeping in mind that CAY’s bauxite is a premium product expected to fetch US$11 higher than market bauxite prices)
- 🔄 Trial mining to commence mid this quarter (the surface miners already on site and commissioned). Commencement expected mid this quarter
- 🔲 Locomotives arriving in country (first 7 shipped from China in late March, expected to arrive from mid-late Q2 and into Q3) The first 7 locomotives are expected late Q2 and wagons to follow in Q3
- 🔄 Road/rail infrastructure completion (expected to be ready during Q2 for ore haulage to the rail facility). Tracklaying has commenced and earthworks at the port have begun.
- 🔲 Alumina refinery Feasibility Study Q3 2026
We want to see CAY execute its development plan as they have outlined below:
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