A Frozen US$140 Million Loan Stalls Cameroon’s First Bauxite Mine
CAMEROON · MINING
Key Facts
—The suspension: AFG Bank Cameroon has suspended all new disbursements on a US$140 million syndicated facility agreed in May 2025.
—Already drawn: About US$75 million had been drawn by 31 July 2026, and that money is not being recalled.
—The casualty: Canyon Resources has withdrawn its schedule for Minim Martap, including the target of a first cargo in the fourth quarter of 2026.
—No new date: The company has not offered a replacement timetable.
—What the bank wants: It is asking for financial information within 15 days and a site visit within 30 days before releasing more funds.
—The takeover: Majority shareholder A2MP has extended its A$0.05-a-share offer for Canyon to 21 September, and the board’s formal answer is due by 3 September.
Cameroon bauxite exports have been pushed back indefinitely after AFG Bank Cameroon suspended disbursements on a US$140 million facility. Canyon Resources, the Australian developer behind the Minim Martap mine, has withdrawn its shipping timetable and set no new one.
What the bank did
AFG Bank Cameroon, the Cameroon subsidiary of Atlantic Group, the Ivorian banking conglomerate, halted new drawdowns on a syndicated facility concluded in May 2025. Roughly US$75 million of the US$140 million had already been released by the end of July.
The suspension does not cancel the credit. It blocks access to the balance until the bank has reviewed the project’s development schedule, its financial model and other parameters.
The lender has asked Canyon to hand over financial information within 15 days and to host a site visit within 30. That money was earmarked for the infrastructure without which the ore cannot reach a ship.
One detail says much about the mood. The loan is secured against the assets of Canyon’s local subsidiary Camalco, and it is guaranteed by Canyon — and by A2MP, the same majority shareholder now bidding to take the company private.
For a developer, a suspension of this kind is more disruptive than a higher interest rate. Work already contracted continues to incur cost while the money to pay for it is frozen.
Why Cameroon bauxite matters beyond Cameroon
Bauxite is the feedstock for aluminium, and the market for it has become a strategic question rather than a purely commercial one. Guinea already supplies a large share of the world’s ore, and buyers have been looking to spread that risk.
Cameroon does not currently export bauxite at all. Minim Martap was meant to change that, adding a second significant export commodity to an economy long shaped by oil and cocoa.
The delay therefore matters to more than one balance sheet. It postpones a diversification that Yaoundé has been promising for years.
The ownership fight running underneath
Canyon’s majority shareholder, A2MP, said in late July that the project’s economics no longer matched its feasibility study. It cited freight costs and marketing premiums less favourable than those the study assumed.
That assessment accompanied A2MP’s offer to buy out minority shareholders at A$0.05 a share, roughly 42 per cent below the pre-bid price. A2MP, which already holds 55.56 per cent, argues that Canyon as currently structured may be unable to fund the project’s remaining capital needs.
The offer was first due to close on 14 September. A2MP has extended it to 21 September, and Canyon’s board must publish its formal answer, including an independent expert’s opinion, by 3 September.
A2MP is owned by Eagle Eye Asset Holdings, Canyon’s long-time cornerstone investor, and FEDA Mining Investments. Until the bid is settled, Australian listing rules largely block Canyon from raising fresh equity, which tightens the cash squeeze.
Canyon has been developing Minim Martap for several years, and the deposit itself has never been the difficulty. The question has always been whether the ore can be moved economically.
What is already built
Not everything has stopped. The first 60 wagons of a 160-wagon order are due in Douala within eight weeks, and trials with seven locomotives are planned for the fourth quarter.
The road linking the mine to the rail terminal is close to finished. The physical project is well advanced; it is the financing that has broken down.
Canyon held about A$31 million in cash at the end of July and has cut all non-essential spending. It is now seeking money through the investment bank Jefferies, exploring prepayments tied to future offtake contracts, strategic partners or a capital raise — none of them guaranteed.
The railway is the real project
Minim Martap’s economics rest less on the deposit than on moving it. Bauxite is a low-value, high-volume ore, and the cost of every tonne-kilometre decides whether a mine works.
That is why wagons and locomotives dominate the progress reports. The 160-wagon order and the road to the rail terminal are the difference between a resource and an export.
It is also why a shift in logistics costs was enough to make the majority shareholder question the debt. On a thin margin per tonne, freight is not a detail.
Guinea solved the same problem by building dedicated rail and port capacity at considerable expense. Cameroon is attempting a lighter version using existing infrastructure, which is cheaper to start and more fragile to finance.
The next month will settle it. The 15-day and 30-day deadlines fall well before the 21 September offer deadline, so the bank’s verdict should be known first.
The wider lesson for frontier mining
This is a reminder that African bank credit carries covenants with teeth. A lender able to freeze a drawdown mid-project holds more practical power than the headline facility size suggests.
It is also a warning about feasibility assumptions. When logistics costs move against a project, the financing structure built on those numbers can unravel quickly.
Investors in Latin American mining will recognise the pattern from Peru and Brazil, where transport economics have sunk more projects than ore grades ever did.
Frequently Asked Questions
Why have Cameroon bauxite exports been delayed?
AFG Bank Cameroon suspended new disbursements on a US$140 million facility for the Minim Martap project. Canyon Resources responded by withdrawing its timetable for a first cargo.
How much of the loan had already been drawn?
About US$75 million of the US$140 million had been drawn by 31 July 2026. The suspension blocks access to the remainder rather than cancelling the credit.
What is the Minim Martap project?
It is a bauxite mine in Cameroon developed by the Australian company Canyon Resources through its local subsidiary Camalco. It would make Cameroon a bauxite exporter for the first time.
What does the bank want before releasing more money?
It has asked for financial information within 15 days and a site visit within 30 days. It also wants to review the project’s development schedule and financial model.
Sources · Connected Coverage
Primary sources: Canyon Resources, Minim Martap project update to the ASX, 24 August 2026, and the A2MP bidder’s statement of 29 July 2026 via Canyon’s ASX filings. Further reporting: Ecofin Agency on the funding halt and the extended takeover deadline.
The regional comparison is Guinea’s bauxite boom, while Cameroon’s contracting record has drawn scrutiny over roads paid for but unfinished. Competition for the continent’s ores is the subject of Africa: The New Scramble, with more on our Central Africa desk.
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