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 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 Mt of bauxite. China’s Gansu Corporation has intentions to develop a 2 000 Mt bauxite deposit which would provide bauxite to Cameroon’s largest aluminium smelter at Edea. Currently the Edea smelter obtains bauxite from Guinea.

Numerous artisinal gold workings are known (producing around 1500 kg/year), but it appears that no modern exploration methods have been used to locate Cameroon’s primary gold potential. Alluvial gold production is derived purely from elluvial and alluvial workings. To date no primary deposits have been successfully located. However, work carried out by the BRGM suggests that gold mineralisation is related to the volcano-sedimentary belts characteristic of the Birimian belt in Niger, Burkina Faso and Mali. Artisinal mining accounts for around 45 000 oz/year. Lom River Gold Corp (formerly Lorica Resources Inc) from Canada has an option to obtain a gold prospect in south eastern Cameroon.

The resources mined in Cameroon are quite limited, with annual artisanal production of around 20,000 oz of gold and 12,000 ct of diamonds, and various building materials. The government is currently examining the assistance it gives to the artisanal mining sector.

Alucam is Cameroon's largest company, and its aluminium smelter is producing and exporting some 90,000 t/y of aluminium from bauxite imported from Guinea.

Cameroon’s geological and mining sector has two objectives. The scientific objective is under the responsibility of the Ministry of Scientific and Technical Research, which oversees a variety of research institutes in the areas of geology and geophysics, hydrology, and energy. The industrial objective is promoted by the Ministry of Mines, Water and Energy, which also has the responsibility for the national geological survey through the Direction of Mines and Geology (still divided in two departments, for Geology and for Mines). The central administration of the Ministry of Mines is comprised of:

• the General Secretariat
• the Mines and Geology Directorate
• the Water Directorate
• the Energy Directorate
• the General Affairs Directorate

The legal framework for Cameroon’s companies follows French law. The Mining Code consists in a law (1964) which regulates mineral substances, and another law (1978) which defines taxes, royalties and mining taxes. The latter was supposed to define the fiscal framework for mining, but this did not happen. Other fiscal laws are necessary for the regulation of this sector and, as a result, investors have to negotiate on a case by case basis the establishment of companies. This results in turn in a very heavy administrative burden, which jeopardises sometimes the evaluation of investment opportunities for which decisions must be made quickly.

In summary, the mining sector is still not a priority in Cameroon’s development strategy. Currently, the Ministry of Mines is in the process of revising the Mining Code, with the help of the World Bank, and aims at presenting a new code in 1998. The intent is to decrease the role of the State in mining operations as well as its discretionary powers, and at the same time to increase its role as a supervisor and regulator of the mining sector. Environmental aspects will also be addressed by the new code.

All mineral resources belong to the State. Prospecting, exploration and mining activities for any mineral deposit are regulated by permits, including:

According to the Investment Code, a Cameroon company must be established, with more than 35% of capital owned by Cameroon citizens, before investments are allowed in the country’s activities. National subsidiaries are allowed.

In Cameroon, mining activities are carried out in a legal framework involving the following laws:

Mining Code - Ministry of Mines, Water and Energy :

• Decree n· 90/1478, modifies and completes terms of decree n· 81/277, which defines collection of taxes related to the mining of quarry products
• Decree n· 90/1477 cancelling contradicting dispositions of decree n· 78/036 regulating quarries
• Regulation n· 01D5/MIMEN/DMG/SDAMT of July 18, 1983, defining terms and conditions for quarry mining by public services and contractors from the administration
• Law 82/20 of November 26, 1982, regulating petroleum companies
• Law n· 80/23 of November 27, 1980, creating a tax on quarry mining
• Law n· 78/24 of December 29, 1978, defining the calculation, rates and collection of fixed taxes, royalties and other mining taxes
• Law n· 77/15 of December 6, 1977, regulating explosives and detonator devices
• Law n· 76/14 of July 8, 1976 (completed by law n· 90/02), defining the rates and collection of fixed taxes for quarry mining operations
• Decree 64/DF/163 of May 26, 1964, implementing law n· 64/LF/3

Law n· 64/LF/3 of April 6, 1964, regarding mineral substances

Customs Code - Ministry of Finance and Information

Labour Code - Ministry of Public Service and Labour

Investment Code - Ministry of Commerce and Industrial Promotion:

· Regulation n· 94/003 of 24 - 1 - 1994 modifying some terms of the Code

Regulation n· 90/007 of 8 - 11 - 1990 concerning the Code

Environmental Code - Ministry of the Environment and Tourism:

• Law n· 96/12 of August 5 defining the framework for environmental management
• Law n· 95/08 of January 30, 1995, concerning radio protection.
• Law n· 89/027 of December 29, 1989 regarding toxic and dangerous wastes.

Geovic Mining Corp., Pons Technology, Alucam, Lom River Gold Corporation, Ministry of Mines and Energy, Société Camerounaise de Metallurgie :[ Add More ]

East Province