INTRODUCTION TO Cameroon

Cameroon located in West Africa, is neighboured by Nigeria, Gabon, Chad, Central African Republic, Congo and Equatorial Guinea. It has a 400km coastline on the Atlantic Ocean.

Cameroon has a wide variety of largely untapped mineral resources, although most have been primarily documented. In many instances comprehensive survey work has been carried out. Currently, the only mining operations are: Oil, the major export commodity, with a refinery near Limbe; Limestone for a major cement plant in Douala; An aluminum smelter at Edea, although most of the bauxite is imported from Guinea; and Artisan gold mining in East Province.

The country has known reserves of bauxite, iron ore, cassiterite (tin), sapphires, rubies, diamonds, gold, molybdenum, rutile, uranium, and natural gas.

INVESTMENT OPPORTUNITIES

Cameroon is a politically stable country with a strong economy, clear legal frameworks and protection of investments is guaranteed. There is also an abundance of skilled and educated labour force.

Cameroon receives very little foreign direct investment, with net FDI flows representing only a small percentage of GDP. Mining, including oil extraction, remains the most targeted sector. France is the largest investor in the country. The Cameroonian economy, which has the potential to become one of the most prosperous and best placed to receive foreign direct investment in Africa, is currently at the bottom of the table in terms of FDI attractiveness.

In order to attract more investors, significant programs are being implemented by the public authorities, with the support of financial backers, in order to improve judicial decisions, increase energy supplies, reinforce economic information, simplify procedures, support companies, and ensure the protection of the economic area against illegal threats.

EXPLORATION POTENTIAL

Cameroon features numerous artisinal gold workings but modern exploration methods to locate Cameroon’s primary gold potential appear under-utilised. However, work carried out by the Bureau de Recherches Géologiques et Minières (BRGM) suggests that gold mineralisation is related to the volcano-sedimentary belts characteristic of the Birimian belt in Niger, Burkina Faso and Mali

Records show that the country has enormous mining potentials and Cameroon is reportedly one of the world’s leading cobalt deposits. There is cobalt and nickel in Nkamouna in Lomie, whose exploitation witnessed some delays following weak commodity, capital and credit markets. Records also show that there exist 750 million tonnes of bauxite deposits in Ngaoundal and Minim-Martap as well as 736 million carats of diamond deposits in the south-eastern Mobilong region.

Cameroon’s major commodity is petroleum, which provides 50% of Cameroon’s exports. Geologically, Cameroon is characterised by Archaean basement, Proterozoic volcano sedimentary packages (similar to that of the auriferous Birimian Belt of West Africa) and several late stage intrusive phases. Cameroon also has extensive bauxite reserves, but requires substantial infrastructure development in order to exploit them. Potential bauxite reserves exist at the Minim-Martap and Ngaouanda deposits, located in the remote northern parts of the country. These two deposits have an estimated combined resource of 1 100 million tonnes of bauxite. China’s Gansu Corporation has intentions to develop a 2 000 million tonne bauxite deposit which would provide bauxite to Cameroon’s largest aluminium smelter at Edea. Currently the Edea smelter obtains bauxite from Guinea.

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COMPANIES MINING IN Cameroon


LEGISLATION & MINING POLICY OVERVIEW

The mining policy of Cameroon is in place promote investments in the mining sector in the Republic of Cameroon. It includes general provisions, common provisions governing mining titles, special provisions applicable to mining operations, provisions relating to quarry materials, the rights and obligations of operators of mines or quarries, financial provisions, reports to technical and administrative supervision of mining operations, penalties and final provisions.

Cameroon’S ECONOMY

The Cameroonian economy is relatively diversified, with oil and mining accounting for 7% of the GDP.

Economic growth is projected to reach 4.4% in 2012, sustained by the recovery of the oil sector. Growth of 4.6% is forecast for 2013.

Integrating young Cameroonians into the country’s economic life is still a challenge. The government has recently shown its readiness to strive for better integration of young people and this should produce results in the short and medium term.