Perth-based mineral miner Canyon Resources Limited reported last week the execution of an agreement with the Cameroonian government to reach a mining deal to develop the Minim Martap Project.
The firm said that in the Cahier de Charges were several important obligations for both parties. Cameroon pledged legal and regulatory stability for the project, Canyon obtained the right to exercise force majeure, and both agreed to establish a dispute resolution mechanism utilizing arbitration by the International Centre for the Settlement of Investment Disputes (ICSID).
The terms of the agreement will remain in force until a Mining Convention is in place, and the agreement’s promise of stability will continue through the mining phase.
Canyon’s managing director Phillip Gallagher said in a press release that the agreement was an important step for the project.
“We are very pleased to have executed the Cahier de Charges with the State of Cameroon. This agreement gives us the confidence of the positive intentions of the Government of Cameroon and provides security and clarity as the Company takes the Minim Martap Project to the next phase.”
Canyon’s Minim Martap Project is a direct shipping ore (DSO) project in Central Cameroon. The project is situated nearby a railway to the port of Douala on the Atlantic Ocean. The state plans to expand the railway in the near future, but Canyon says the situation still offers a low-cost transportation option without it.
The firm will carry the project out in two phases, with the second phase including the opening of a railway to the deepwater port of Kribi.