Despite being richly endowed with resources like gold, iron, bauxite, and cobalt, Cameroon’s mining sector continues to struggle with structural challenges that hinder its transformation and economic impact. These obstacles were the focus of a panel held on May 15, 2025, in Douala, under the theme “Cameroon’s Mining Sector: Between Economic Opportunity and Ethical Imperatives.” Experts highlighted persistent issues such as lack of transparency in the allocation of mining permits, insufficient energy for local mineral processing, and a tax regime viewed as uncompetitive.

The event was co-organized by Innogence Consulting, the intelligence firm led by analyst Landry Djimpe, the law firm Nya & Co, and compliance attorney Lucie Nzongang.

According to Cameroon’s Ministry of Mines, Industry, and Technological Development (Minmidt), an extensive airborne geophysical survey carried out between 2014 and 2019 uncovered around 500 unexploited mining sites across five regions—East, West, Adamaoua, North, and Centre. These sites host a wide range of resources, from gold and iron to bauxite and cobalt. Yet despite this proven geological potential, mining’s contribution to GDP remains below 1%, official data shows.

Energy Deficit Undermines Industrial Ambitions

Energy remains a critical bottleneck to unlocking value. In Grand-Zambi, South Region, G-Stones Resources S.A., a subsidiary of businessman Dieudonné Bougne’s Bocom Group, is operating a major iron deposit. The company plans to process 1 million tons of iron concentrate annually into 800,000 tons of billets for local steel production.

“This complex requires 70 MW to operate,” says Éric Igor Ngantchou, Head of Studies and Project Management at Bocom. Yet energy capacity remains woefully inadequate, especially in Kribi, where the deep-water port is expected to serve as a logistics hub for raw material exports. Patrice Loumou, Head of Industrial Strategy at the Kribi Port Authority (PAK), notes that the city receives only 13 MW of the 176 MW generated by Globeleq’s thermal power plant, with the rest fed into the Southern Interconnected Grid (RIS), leaving local industries energy-starved.

Taxation and Compliance Concerns

Taxation is another sticking point. Clotaire Kouakep Nzengang, Deputy Director of Mining Operations at Minmidt, explains that taxes on artisanal and semi-industrial production can reach 25% of extracted volume. The state retains a right of first refusal on the remaining 75%, contingent on its financial means.

“If the state cannot exercise this right, it issues a certificate, which is required before export can proceed,” he explains.

This cost-sharing mechanism is intended to ensure better resource value capture for the state. The mining sector is a central pillar of Cameroon’s National Development Strategy 2030 (SND30), particularly under the “mine-metallurgy-steel” axis. In support of this goal, the government adopted a new mining code in 2023, framed as an attractive, competitive framework based on a “first come, first served” principle.

Legal Uncertainty Still Looms

The new legal framework also promotes integrated project development, deeper geological understanding, data valorization, and stronger community engagement. But critics argue that implementation remains patchy.

According to business lawyer Me Sarada Nya of Nya & Co, “overlapping institutional mandates, lack of accessible mining registries, and incomplete publication of mining contracts leave significant blind spots.” Eight out of nine enforcement decrees have been published, but critical gaps remain—particularly in international arbitration mechanisms.

“The lack of a reliable arbitration system and ambiguous fiscal terms—such as variable royalties with no clear calculation method—create damaging uncertainty,” she warns. “Retroactive contract revisions, as seen in the Mbalam project, have led to costly disputes and frozen investments estimated at $120 million.”

Such practices undermine the principle of legal security, which the mining code is supposed to guarantee. Industry players are calling for stronger collaboration among government, investors, and local communities. With more ambitious reforms, they argue, Cameroon could build a robust mining industry capable of making a meaningful contribution to the national economy.

Source: Business in Cameroon