Cameroon's bauxite ambitions stalled by financial disputes and hostile takeover

Cameroon's ambition to become a major bauxite exporter faces a significant setback as Canyon Resources has indefinitely postponed its Minim-Martap production goals, originally slated for late 2026. This decision casts a shadow over the country's economic diversification plans, which heavily relied on the project to compensate for dwindling oil revenues.

The primary obstacle stems from financial turmoil. AFG Bank Cameroon has frozen a critical credit line of 82 billion FCFA (approximately $140 million), essential for the project's commencement. This financial freeze coincides with an aggressive stock market maneuver by A2MP Investments, the company's principal shareholder led by businessman Gagan Gupta. A2MP, already holding 55.56% of the capital, has launched a hostile takeover bid, offering a mere $0.05 Australian dollars per share, arguing that escalating logistical costs have rendered the project unprofitable.

Despite these corporate battles, the on-the-ground reality presents a stark paradox. The mining road infrastructure is complete, and the first 60 wagons, ordered from China, are expected to arrive in Douala in October. The Minim-Martap deposit itself is substantial, estimated at 1.1 billion tons of resources, positioning it among the world's richest.

The situation has led to a governance crisis within Canyon Resources, evidenced by the impending departure of CEO Peter Secker by the end of August. The future of the Minim-Martap project, and by extension Cameroon's mining ambitions, now hinges on the outcome of the takeover bid, with the closing date set for September 21, 2026.