Setbacks to effective takeoff of mining sector in Cameroon

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Thu, 4 Jun 2015 Source: Cameroon Tribune

Cameroon has huge mineral reserves but challenges are inhibiting them from substantially contributing to the country’s development.

Cameroon has huge mineral potentials yet, information from the Ministry of Mines, Industry and Technological Development, MINMIDT, says its contribution to Gross Domestic Product is far below expectation.

A presentation by an official in MINMIDT in November 2014 in Douala revealed that the mining sector contributes less than one per cent to Cameroon’s GDP.

A plethora of mining projects have been initiated with the Mbalam Iron Ore, Mammel Iron Ore, Nkout, Minim-Martap/Ngaoundal Bauxite, Nkamouna Cobalt-nickel-Manganese, Mobilong Diamond and Gold in Bétaré-Oya Iron Ore projects to show. What then is holding the sector back from emerging?

Funding

Sourcing for funding for any project is an uphill task but experts say the mining sector is a rare one whereby donors are readily available to fund projects. Accusing fingers point to the fact that investors are full of speculations. They blow the figures, secure funds and inject very little into the projects, leaving government and local communities without any life-changing proceeds.

Enclave Mining Sites

Field experts say a photograph of mining sites does not speak well of a sector that is seeking for better days. Information from the Small-scale Mining Support and Promotion Framework Unit, CAPAM, reveals that most investors are involved in artisanal mining. This, according to sources, explains why they tap their minerals and go. There are no roads with little accessibility to production sites.

A photograph of the field is disheartening with holes dogged and abandoned. Yvonne Nunga, an environmentalist in rehabilitating mining sites, says the land is not beautiful with everything degraded. They are advocating for a system whereby investors can at least fill the land mines after digging and carting away their wealth. A programme is underway to see how the sites can be rehabilitated. Notwithstanding, some mining engineers say “local communities should not sit and wait for God.” Everybody has to be active.

License Awards

The issuance of mining license to companies appears to be a bone of contention in the sector. Over 170 licenses have been issued but reports say not all license owners are active on the field. Do we give licenses to people without any guarantee of effective mining activity on the ground? It is good to facilitate the issuance of exploration licenses for artisanal mining, experts say. But government on its part has to be firm in the control of activity. The law provides that license holders must after three months declare earnings. Analysts hold that MINMIDT has to withdraw licenses from unfruitful investors.

The sector also has as prerequisite to sail through; roads, railway and maritime transport infrastructure, the revising of the 2001 Mining Code and an end to smuggling.

Auteur: Cameroon Tribune