Cameroon’s mining sector is experiencing rapid growth, illustrated by the agreement signed with Camalco. This project is designed to improve the living conditions of Cameroonians by creating more than a thousand direct jobs and many indirect jobs, while stimulating the national economy.
As part of Cameroon’s industrialization process, this project is a major asset for the local industrial fabric. It is planned that 10% of the company’s shares will be held free of charge by the State. Expected revenues include a 3% ad valorem tax, 5% of the marketable products of the production sharing, and 1% of the turnover excluding taxes intended for the development fund of the mining sector. A special capacity development account will also provide 1% of the turnover excluding taxes, while the concession rights are set at 100,000 FCFA/Km2/year and the export tax at 2%. In addition, 10% of the capital of the project company will be open to nationals, thus encouraging local investments in this key sector of the economy. The main sectors targeted are energy, transport, mining, industry and general infrastructure.
World-Class Deposits
In 2020, 14 bauxite plateaus were identified in Ngaoundal and Makan bauxite mines. , a figure increased to 79 after the identification of 65 new plateaus by Camalco following the resumption of exploitation permits. The Australian mining company revised upwards the initial estimates of 550 million tonnes by Cameroon Alumina, assessing the combined potential of Minim-Martap and Ngaoundal at 892 million tonnes after the analysis of 16 plateaus. The study of the remaining plateaus could increase the quantities of bauxite to 2 billion tonnes, placing the Cameroonian deposit among the largest in the world, comparable to the plateaus of Guinea which holds more than two-thirds of the world’s reserves of this mineral.
Cameroon’s mining potential: an underexploited wealth
This agreement comes at a time when Cameroon’s mineral resources remain largely untapped. The contribution of the mining sector (excluding oil) to GDP is marginal, representing less than 1%. The Ministry of Mines, Industry and Technological Development plans to transform Cameroon into an emerging country with a competitive industrial and mining sector by 2035.