Mining in Cameroon - A lawyer's view

MINING IN CAMEROON BY ESAYA DANIEL ABANDA TEZO, ESQ. 

Issues to be looked at include: 

⦁   The Government views on the mining sector in Cameroon 

⦁   The key government figures involves and their roles. 

⦁   Opinion of public and civil society on mining in Cameroon. 

⦁   Some mining companies in Cameroon and their reputation. 

⦁   Has there ever been any social and/or political issues faced by any mining project in Cameroon? 

⦁   What political issues today could possibly affect mining? 

Mining in Cameroon is governed by the state through Cameroon's Ministry of Mines Industry and Technological Development. The Ministry is in charge of " the elaboration and implementation of the Government’s mining and industrial policy and technological development strategies within the various sectors of the national economy." The sector is generally regulated by the Mining Code of 2016.  

I - Government views of the Mining Sector in Cameroon: 

Cameroon is endowed with lots of natural resources with a great deal of these natural resources being mineral deposits. These natural resources contribute a great deal of the country's Gross Domestic Product and are a key engine to its economic growth. The mining sector is therefore of major interest to the government especially with regards to its exploitation and regulation. 

All mineral deposits found in the sub soil, territorial waters and continental shelf of the Republic of Cameroon is the property of the state, with the state through the government ensuring and exercising sovereign rights over them. The government of Cameroon therefore regards the mining sector as very important. Infact the recent Law No 2016/017 of December 2016 on the Mining Code shows government interest in promoting the sector - its development and regulation.  

The President of the Republic wants to give impetus to the dynamic development of the mining extractive industry through a challenging policy by developing strategies aiming at paving the way to a competitive, solid, efficient mining sector, and profitable in terms of goods and value, throughout the world. 

This vision of the Head of State is supported by the significant quantity of Cameroun’s mineral potential. The information about the ground and the underground are said to be known at about 40%. It is important to notice that this mineral potential will be even more significant when prospection works that will cover a larger area of the country. 

Because they generate wealth and value, the projects in the mining domain bring much hope and are de facto major projects which will surely stimulate economic growth in order to make Cameroon an emerging country by the year 2035. 

In fact, every mining project is a source of direct or indirect income for the State. Direct incomes concern various taxes such as corporate tax, license fees, VAT, supervisory tax ad valorem and custom taxes etc. Indirect incomes are mainly derived from the from the fact that the State is entitled to have shares in mining companies to a maximum of 10%. Moreover, services related to operation in terms of supply of spare parts and various works, also provide incomes related to charges for the said services. The cumulated amount of the various incomes is a significant increase in the State’s foreseeable incomes. 

The development of the extractive industry in Cameroon depends on a strong policy established for the realization of the aforementioned projects. 

Major projects that the government has embarked on in the promotion of mining in Cameroon include: 

⦁   CAPAM - The Artisan Mining Support and Promotion Framework. 

⦁   PRECASEM - Mining Sector Capacity Building Project  

⦁   KIMBERLEY PROCESS 

⦁   APROCOM-PH - Project to Improve Productivity and Competitiveness of the oil palm sector 

II - The key government figures involves and their roles: 

The Key government figures in the mining sector in Cameroon includes  

a.   The minister of Mines: 

The Minister of Mines has an extensive role as far as mining is concerned in Cameroon. These roles include: 

- Classification of mineral deposits 

- Exclusion of land or mineral from being exploited 

- Granting licenses for exploration permit (upon approval of the president of the republic. 

- Issuance of prior authorization for exportation of up to 75% of investor's share of profits. 

- Issuance of reconnaissance permits for industrial mining. 

- Issuance of exploration permits for industrial mining. 

- Reception of periodic reports from holders of exploration permits. 

- Signatory of mining agreement. 

- Issuance of mining permits for small-scale mining 

- Imposes administrative penalties when the terms of the agreement are not respected.  

b.   The president of the Republic: 

- Approves the granting of exploration licenses for semi-mechanized non-industrial mining of precious and semi-precious substances by the minister of mines. 

- Issues industrial mining permits by presidential decree. 

c.    Registrars of the Courts of First Instance: 

- Only legal persons under Cameroonian Law shall be granted a mining title, therefore a company must be registered in Cameroon following the OHADA Law on Commercial Companies and Economic Interest Groups. It is at the Trade and Personal Property Rights Register of the Registry of the Court of First Instance of the jurisdiction of the registered address of the company to be registered that takes charge of this function. 

d.   The Mining Title register: 

- Receives all applications for mining title or reconnaissance permits and forwards them to the minister of mines within 15 working days. 

- Drafts a technical opinion as regards the applications received and forwards to the minister as a guide for the consideration of the applications. 

e.   The Director General of the Treasury: 

- Receives payments for fixed charges and royalties. 

f.   Non-Industrial Mining Supervision Body: 

- Monitors and supervises production, marketing, promotion and processing of substances derived from non-industrial and semi-industrial mining activities. 

III - Opinion of public and civil society on mining in Cameroon: 

IV - Some mining companies in Cameroon and their reputation: 

1.   AP Gold and Precious Metals 

2.   BTS Mining's Contractors Sarl Cameroon 

3.   MBALAM MINING SARL 

4.    Hydromine cameroon 

5.   NALCO Emerging Markets 

6.    Camina SA 

7.   Sundance Resources LTD* 

8.    Caminex Sarl - Siège social 

V - Has there ever been any social and/or political issues faced by any mining project in Cameroon? 

VI - What political issues today could possibly affect mining? 

Cameroon has for so many years been regarded as one of the most politically stable African countries. However, in the recent years, this has not been the case. The country has faced certain political instability which is still persistent even today and may continue for a long while if lasting solutions are not meted.  

One major political issue that could affect mining in Cameroon today is the Boko Haram insurgency that is recurrent in the Northern part of Cameroon. This part of Cameroon has mineral deposits of diamond, gold and uranium. Mining these minerals could thus be difficult given the present political instability posed by the Boko Haram insurgency in the area. 

Secondly there is what is called the ''Anglophone Problem" which is troubling the country. Cameroon is a bilingual country with ten regions. Two out of the ten regions are largely English-speaking regions. These English-speaking people of Cameroon are dissatisfied with the governance of the country and feel they're being marginalized by the largely French Speaking government. It has brought up serious political instability in these two regions - the North-West Region and South West Region. Strikes and "Ghost Towns" are being observed and the major towns are highly militarized to ensure peace reigns. It should be noted that these regions are rich in minerals such as bauxite, gold and a large extension of rocks and mineral water deposits.