AFG Bank Suspends $140 Million Loan for Cameroon Bauxite Project
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AFG Bank Cameroon suspended further disbursements on a US$140 million syndicated loan facility for Canyon Resources' Minim Martap bauxite project, citing a need for updated financial documentation and a site inspection. While US$75 million of the facility had been drawn by 31 July 2026, the freeze halted development and prompted Canyon Resources to withdraw its project shipping schedule, including the target for first cargo in late 2026. The move coincided with a takeover bid by majority shareholder A2MP, which argued that the project's current economics and capital requirements are no longer favorable. This delay postpones Cameroon’s entry into the global bauxite export market, a sector previously identified by the government as a key opportunity for economic diversification.
Consequences
The freeze on funds forces a halt to capital-intensive infrastructure work while existing costs continue to accrue, further challenging the company's financial stability. Additionally, the ongoing takeover bid by A2MP restricts Canyon Resources from raising fresh equity under Australian listing rules, leaving the company's funding path uncertain until the ownership dispute is resolved.
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