Mining in Cameroon – looking for an opportunity

The neglected mining sector in Cameroon is looking for an opportunity, writes Dr Nicolaas C Steenkamp.

Cameroon borders the Atlantic Ocean to the southwest and shares land boundaries with Nigeria, Chad, Central African Republic, Republic of the Congo, Gabon and Equatorial Guinea. The geographical setting of the country is very diverse, starting at the coastal plain – a narrow, low-lying belt in the southwest, fringed by sandy beaches and backed by mangroves. The Western Highlands are dominated by Mount Cameroon – the highest peak in West Africa (4 070m) – and are characterised by volcanic mountains and dissected plateaus. The Adamaoua Plateau is the vast central plateau with an average elevation of 1 000m, featuring savanna grasslands and scattered mountains, while the Northern Plains is a region of low-lying savannas that slope gently towards Lake Chad in the north.

Cameroon experiences a range of climatic zones due to its latitudinal position and varied topography. In the south it tends to be hot with a humid equatorial climate and abundant rainfall throughout the year. Closer to the centre, a tropical savanna climate with distinct wet and dry seasons is experienced, while the north offers a more semi-arid climate with hot, dry summers and mild winters.

Cameroon is a water-rich country with the Sanaga River, the country’s longest river, draining the western highlands and flowing into the Atlantic Ocean; while the Benue River, a tributary of the Niger, traverses the northern plains. Additionally, numerous lakes dot the landscape, including Lake Chad, Africa’s second largest freshwater lake by volume.

 

Mining regulation

The government of Cameroon established a new mining code in 2016, aiming for a more transparent and equitable sector, introducing six mining titles. These are referred to as Artisanal and Semi-Mechanised Artisanal and are reserved for Cameroonian inhabitants. The remaining titles align with international standards for the award of permits and licenses. This includes Reconnaissance Permits issued for preliminary exploration, followed by Exploration Permits which grant exclusive rights for further exploration, Small-Scale Mining Licenses  for smaller-scale commercial operations and Industrial Mining Licenses for large-scale mining projects. There are also specific regulations issued for Mining Waste Processing Licenses that regulate handling and processing of mine waste.

The code stresses Cameroonian involvement and mandates prioritising the recruitment of Cameroonian nationals with the required skills for all positions. Additionally, 95% of all jobs not requiring specialised skills must be filled by Cameroonians. The specific tax rates and royalties depend on the mineral being extracted. However, the code generally aims to strike a balance between attracting investment and ensuring the government receives a fair share of resource wealth.

Environmental regulations in Cameroon have gained traction in recent years. The mining code mandates that all mining projects undergo a rigorous EIA process. This assessment must identify potential environmental impacts and propose mitigation measures. Additionally, companies are required to include mine closure and rehabilitation plans in their applications.

While the 2016 code represents a step towards a more transparent sector, challenges remain. Enforcement of regulations can be irregular and concerns persist regarding corruption and the influence of foreign investors. Additionally, ensuring effective mine closure and rehabilitation is crucial for minimising long-term environmental damage.

 

Geological setting

Cameroon is underlain by Precambrian rocks of undifferentiated gneisses and migmatites, Cretaceous sediments and Cenozoic sedimentary and volcanic formations. Meso- and Neoproterozoic rocks are exposed in the southeast of the country. In northern Cameroon the sedimentary facies of the Cretaceous are mainly continental and the coastal area is mainly marine. A zone of young volcanic extrusives crosses Cameroon in a northeastern direction. 

Diamonds have been found to be associated with Cretaceous fluviolacustrine formations of the “Séries de Carnot” near the border with the Central African Republic, but only artisanal mining of diamonds has been noted. Gold indices are found across the whole country,  with the highest concentrations in the east, again along the borders with the Central African Republic and Chad.

Cassiterite has been reported as a small deposit at Mayo Darlé in north-west Cameroon, while nickel and cobalt of potential economic concentration are known to occur east of Lomie. Rutile was exploited until 1957 near Yaounde and bauxite occurs in two larger deposits in the Ngaoundal and Minim-Martap Complex in the south of the country and near Fongo-Tongo in the west. In addition, there are two iron deposits with average grades of 30-40% Fe, in the southwest at Mbalam and near the coast at Kribi. Limestone was exploited at Figuil for a local cement manufacturing plant, while marble occurs in northern Cameroon near Bidzar. Pozzolana is reported to be mined at the Djoungo quarry. Petroleum is produced along the coast north of Victoria and offshore in the Mokoko-Abana Oilfield.

Exploration

Exploration is currently limited to two companies driving flagship projects in the country. Oriole Resources Plc, an AIM-listed exploration company, is actively exploring for gold in Cameroon, but also has an interest in exploring for lithium. Currently their project focus is still at the early-stages of exploration for gold deposits. They have three exploration projects that cover a land package of over 4 400km². The first, Bibemi Project (north-eastern Cameroon) is the most advanced with an 82.2% ownership by Oriole. The exploration team has identified an orogenic gold system spanning nearly 12km, with mineralisation hosted in quartz and quartz-tourmaline veins. To date the program has completed four diamond drilling phases totalling 6 685 meters across 54 holes, resulting in a JORC Inferred resource estimate of 375 000oz Au at 2.30g/t for the Bakassi Zone 1 prospect.

The second is the Wapouzé Project (north-eastern Cameroon) – also an early-stage project with a 90% ownership by Oriole, which covers 136km² within Neoproterozoic Pan-African greenstone belts. A historical stream sediment sampling program identified anomalous gold values.

The third is the Mbe Project (central Cameroon), an early-stage project with a large landholding (312km²) within the Eastern CLP package. The program identified a 3km zone of high-grade gold mineralisation with surface samples exceeding 134g/t Au. There has also been an earn-in agreement signed with BCM International for a potential 50% stake acquisition.

The Minim Martrap bauxite project, spearheaded by ASX-listed Canyon Resources, presents a significant high-grade bauxite deposit in central Cameroon. The company aims to develop a shallow, low-strength, near-surface bauxite deposit suitable for open-cut mining with no drilling and blasting required. The project has a proven ore reserve of 108.91-million tonnes with grading at 51.1% total aluminium oxide (Al₂O₃) and 2% total silica oxide (SiO₂). The projects represent robust long-term potential, targeting production of up to 6.4-million tonnes of high-grade bauxite per year over a 20-year life-of-mine. This translates to utilising only 10.6% of the current project resource, indicating significant growth potential. Construction was expected to begin in the second quarter of 2024, subject to regulatory approvals and finalisation of financing (as at the time of writing).

Several other companies hold exploration licenses for various minerals including cobalt, nickel and iron ore. However, none have progressed to the development stage yet. These include Geovic Mining for the Nkamouna nickel-cobalt project, Cameroon Alumina for the bauxite development project in Minim-Martap and Ngaoundal and Cameroon and Korean Mining for the Mobilong diamond mining project.

 

The future

Cameroon’s mining sector holds significant future potential but faces significant challenges that must be addressed. However, there are several promising aspects to consider. Cameroon still hosts unexplored deposits as a large portion of its landmass remains unexplored, hinting at the potential for new discoveries of valuable minerals like gold, bauxite, cobalt and nickel. The government’s focus on developing the mining sector through a revised mining code and attracting foreign investment creates a more favourable environment for exploration and development. There has also been a push towards accelerating infrastructure improvements, particularly transportation networks, which could streamline future mining operations and facilitate the export of extracted resources. Rising global demand for minerals like bauxite used in aluminium production and cobalt used in electric vehicle batteries could create a lucrative market for Cameroonian resources.

The most pressing challenge for the exploration and mining sector to address involves environmental concerns that require balancing resource extraction with environmental protection. Stricter enforcement of regulations and adoption of sustainable mining practices are essential. Balancing mining activities with the needs of local communities requires transparent communication, ensuring communities benefit from development projects, and the mitigation of potential disruptions to livelihoods and traditional practices. Addressing concerns about corruption could improve investor confidence and ensure resource wealth is used effectively for national development, while maintaining regional stability is also vital for attracting foreign investment and ensuring smooth operation of mining projects.

Dr Nicolaas C Steenkamp is an independent consultant, specialising in geological, geotechnical and geometallurgical projects and mining project management. He has over two decades of industry experience with global exposure. (ncs.contract@gmail.com)

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