Ahead
of the second edition of the International Mining Exhibition and Conference
code named CIMEC 2015, the Chairman of the Organization Committee, Dr. Fuh
Calistus Gentry, Secretary of State for Mines, Industries and Technological
Development has declared that all is set for the event. In an exclusive
interview, Dr. Fuh Calistus outlines some of the innovations, the level of
preparedness and the stakes.
Excerpts….
 |
| Dr. Fuh Calistus |
Mr. Minister, what are the stakes of this second
edition of the Cameroon International Mining Exhibition and Conference (CIMEC
2015) scheduled to take place from 27 to 29 May?
Dr. Fuh
Calistus Gentry: The
organization of CIMEC 2015 on the central theme “The Sustainable Development of
the Mining Sector in Central Africa",
aims at promoting the local development of mining industries in Cameroon
through exchanges between national and international experts of the mining and
related sectors, lawyers, economists, environmentalists, university lecturers
where each stakeholder has a part to play, so that the mining sector contributes
effectively towards the country’s growth.
The stakes are
in the short and medium term.
In the short term,
it is intended to encourage mining industries and related activities
(geophysical survey companies, drilling companies, assay laboratories, expert
firms, etc.) with proven experience, to settle in Cameroon in order to develop local
deposits and those of the CEMAC Sub-region.
It is also
intended to showcase mining projects which are expected to go into production in
the short term such as the Borguené Gold Project developed by CAMINCO S.A and
the Kribi iron ore project operated by SINOSTEELCAM S.A.
It therefore
contributes towards promoting and developing the Cameroonian mining sector in
particular, and that of CEMAC zone, in general, so that it may support more
effectively, policies aimed at boosting growth, alleviating poverty, reducing unemployment
and improving the livelihood of the population.
In the medium
term, it is intended to position Cameroon as a catalyst of the extractive industry, a regional platform for promoting,
trading and making transactions in the mining industry and related activities, just
as INDABA in South Africa or PDAC in Toronto in Canada.
What makes it different from the first one?
Dr. Fuh
Calistus Gentry: During CIMEC
2013 which lasted for three days, experts formulated resolutions aimed amongst others
at encouraging public private partnership by organizing other image enhancing
events, encouraging the establishment of assay laboratories for rocks and minerals,
setting up a composite structure in charge of implementing the resolutions of
the conference. In fact, the first recommendation was to make CIMEC a permanent
activity, coming up every two years.
It is in this light
that we deemed it important to organize the second edition which will enable to
consolidate and improve on the invaluable assets of the past edition, in terms
of the caliber, quality and variety of participants, exhibitors and
experts.
The main awaited
results, include arousing interest, encouraging and supporting the establishment
of related structures. The interest here is to reduce considerably charges in
terms of time, energy and means for the benefit of operators of the geological
and mining industry. For example in Ghana, there are laboratories in the rural
area. Each prospector can analyze rocks or ore samples directly in these rural
laboratories and send the results to the international financial market in
order to seek reliable partners to further research on the said ore.
The main players
concerned are mining companies involved in exploration, mining and processing, assay
laboratories for rocks and ores, survey, equipment and mining logistics companies
of the mining industry, law firms, consultancy firms specialized in finance and
research, as well as training institutes specialized in the mining sector.
Therefore, from
27 to 29 May, the Yaounde Conference Centre is expected to receive close to 800
participants and 200 officials and operators of the mining industry and related
activities, coming from CEMAC countries and from about thirty other countries
with proven experience in the area, in particular from North America, Europe,
Asia, West and South Africa.
Two years after the organization of the first edition
of CIMEC, the expected fallouts in particular the attraction of foreign direct
investments in the mining sector is not visible. What has changed since 2013 in
the mining sector in Cameroon thanks to this event?
Dr Fuh
Calistus: The most
outstanding outcomes from the implementation of the aforesaid recommendations
include the following:
§ Some companies with a poor performance record had their
mining titles withdrawn. The said mining titles were letter advertised for
international expression of interest including specifications with precise
deadlines. The intention is to select companies with proven technical and
financial capabilities. that is the case of the Akonolinga rutile and Fongo
Tongo bauxite deposits;
§ Increase in national gold production through the mastery,
by the authorities, of the mechanized artisanal mining process as well as the
channeling of their related products in the formal circuits of the economy. By
restoring order in this branch of industry we have been able to collect
approximately 70 Kg of unrefined gold on behalf of the State within six months;
§ The imminent start of the industrial mining of the gold
deposit in the East by CAMINCO SA and the iron ore deposit in the South by
SINOSTEELLCAM S.A;
§ Cameroon’s accession to the Kimberley Process;
§ Cameroon admission to the Extractive Industries
Transparency Initiative (EITI);
§ After CIMEC 2013, several companies, some of which are
supported by their embassies, came to Cameroon to request for new licences.
What are the expected spin-offs of this new edition?
Dr. Fuh
Calistus Gentry: The main
awaited benefits, include arousing interest, encouraging and supporting the
establishment of related structures. The interest here is to reduce
considerably charges in terms of time, energy and means for the benefit of
operators of the geological and mining industry. Pursue international calls for
expression of interest on concessions which have been withdrawn from companies
which have not been performing well in order to grant them to companies which
have shown some interest during this edition and which have proven technical
and financial capabilities.
One of the issues which will certainly be addressed
during this conference, is Cameroon’s mining potential and the numerous
opportunities that it offers for Cameroon’s economy if exploited. It is not
timely to proceed to action by resuming all these mining projects which seem to
have fallen into oblivion?
Dr.
Fuh Calistus Gentry: It should
be stressed that the Government took the bull by the horns by devising
short-term mineral development strategies. It can be observed that mining
activities during the last five years have witnessed significant progress due
to a particularly attractive legal and legislative framework. The State ensures
a regulatory role and grants administrative facilities, given that exploration
and mining are the prerogative of the private operators.
In
terms of potential, some thirty substances have been discovered. They include:
a)
Base
metals
1. Iron: Mbalam
(CAMIRON) in the East with 220 Million tons of rich ores of more than 60% iron,
2,4 billion of average ores between 25 and 60%. Other deposits (iron of Mamelles
in the South (SINOSTEELCAM) with 350 MT of an average content of 30% iron. The
iron-bearing resources of Nkout (South) (2,7milliards T), operated by CAMINEX-AFFERO
MINING and the iron of Esaka (CAMINA).
2.
Bauxite (Aluminium): Mini-Martap with 1.116 Billion tons with 43.7%
alumina and 1.8% silica, Ngaoundal (Adamawa)(120 Million Tons) operated by
CAMEROON ALUMINA LIMITED (CAL),
Fongo-Tongo (46 Million tons extensible to 70 Million tons), in Foumban
(Western) (428 Million tons).
3. Cobalt
- Nickel - Manganese: the lateritic deposits of cobalt, nickel, manganese
in the East Region operated by GEOVIC, it is
one of the most significant surface deposits worldwide.
4. Titanium: the Akonolinga, Nanga-Eboko, Otélé deposit gave a
partial evaluation of more than 300 million tons of ore whose potential is
likely to make it the second largest rutile reserve worldwide.
5.
Tin: the
Mayo-Darlé deposit which is an old artisanal mining site with 6 500 tons of
cassiterite extracted from 1933 to 1968.
b)
Precious and semi-precious substances
1. Gold,
Diamond and Saphir which are exploited
by artisan miners in the East, Adamawa, North, Far-North, South Regions.
c) Building,
development and decorative materials
1. Marble: One (1) marble deposit
of 2.5 million tons in Bidzar and Biou, exploited for more than 40 years now by
ROCAGLIA;
2. Limestone: the Figuil deposit with 600 000 tons, which is used for
the CIMENCAM cement factory, the Mungo, Logbadjeck, Kompina, Mintom deposits;
3. Pozzolana: a pozzolana deposit is currently being exploited at
Djoungo (between Douala and Nkongsamba);
4. River sand
and gravel: Manoka
(maritime coast) deposit exploited by SOCAVER for bottle production.
Unfortunately,
numerous malfunctions have been observed in the field of artisanal mining such
as:
·
the
proliferation of clandestine mining sites due to the gold rush;
·
the rampant
degradation of the environment;
·
the artisanal mining
authorizations granted are used for speculation purposes between owners and their
technical and financial partners
We deplore the fact that in the case of industrial mining
most holders of prospecting permits are unable to move to the production phase. Some permits are used for speculation.
To redress this situation, government took appropriate
measures, which include:
a) Improving geological and mining information With the assistance of the World Bank, PRECASEM
launched a campaign of airborne geophysical surveys. Following the campaign,
thirteen (13) geological maps will be drawn therefore increasing the number to
fourteen (14).
b) Reducing speculation and searching for reliable
strategic partners
·
In order to
fight against negative speculation to the detriment of the country’s interest, two international calls for expression of
interest were launched to promote the bauxitic block of Fongo Tongo and the
rutile bearing block of Akonolinga in a bid to get reliable strategic
partners capable in the short term to into production.
·
The progressive
bonus is from now on applicable on transactions carried out on the mining
titles. For example, the progressive bonus applied to the title of the
transaction between INTERNATIONAL MINING
& INFRASTRUCTURE CORPORATION PLC (IMIC)
and AFFERO MINING (CAMINEX) S.A for the development of the Ntem permit is 3 281 210 515 (three billion two hundred
and eighty one million two hundred and ten thousand five hundred and fifteen) CFA
F, payable directly to the Public Treasury.
c)
Computerizing the Mining Register within the framework of the simplification of
procedures so that all Cameroonians and mining operators are informed on the
free national mining area.
d)
Suspending the issuance, renewal and
transactions on artisanal mining authorizations. After this suspension decision,
a complete inventory of fixtures was made, the
fine cartography of mining sites as well as the inventory of the equipment of
operators involved in the sector. Today it can be observed that the State
has resumed control over mechanized artisanal mining activity.
e)
Sharing production within the framework of mechanized artisanal mining, instituted by Decree No. 2014/2349/PM of 1st
August 2014. This
deduction is fixed at 15% and is carried out by the CAPAM. These measures enabled to increase State
revenue. So far, MINMIDT has collected approximately 70Kg of unrefined gold on
behalf of the State.
What is the contribution of mining to the Cameroonian
economy today.
Dr.
Fuh Calistus Gentry: It is not
superfluous to recall that apart from artisanal mining, the exploitation of
building materials and mineral water, the exploitation of concessible
substances has not yet begun in Cameroon. The revenues generated from the
above-mentioned exploitations are expressed in term of fixed fees on applications
for the granting or renewal of mining titles, purchase and marketing agencies, smelting
units, jewelries, export taxes for diamonds and gold, surface rentals,
extraction taxes and ad valorem tax.
With
the introduction of the principle of production sharing within the framework of
the mechanization of artisanal mining, the State recovered 52kg of gold ingots representing
approximately 1.79 billion within six months. This means that by the end of the
year, this activity only can generate close to 2.200 billion CFA F. It is worth
noting that the above figures do not include fixed fees. These gold ingots will
be used to reinforce Cameroon’s gold reserves. It should be stressed that the
size of the mining projects currently under development shows that the generated
revenues from taxes could be higher than oil revenues.
In spite of the enabling framework currently put in
place by the government to attract investors, they are responding rather slowly.
What do you think is responsible to this?
Dr. Fuh Calistus Gentry: We cannot affirm that the investors are slow in
responding. We can point out that this situation is due to the fact that mining
projects, as you know, require a relatively longer time to mature. In Cameroon,
projects which are at the most advanced stages require the construction of
related infrastructures for the effective start of the mine. If we take the
case of the Mbalam iron, we need to build approximately 580Km railroad between
Nabeba and Kribi, to convey ore to the Kribi Deep Sea Port where a ore tanker terminal
will be built for shipment purposes. Negotiations are underway and the State
has just decided to position itself as operator to construct these related
infrastructures. Chinese partners have been identified to carry out these works
following the BOT (build-operate-transfer) model. You agree with me that
investors are interested by mining projects in Cameroon. It should be mentioned that oil projects currently
under exploitation went through the same stages, but they were very discrete
owing to the fact that they were carried out offshore and far from the public
notice.
Within a context marked by a drop in the prices of oil
and the raw materials on the international market, what actions could be taken in
the short term to benefit from the numerous ores which the Cameroonian subsoil
is endowed with?
Dr.
Fuh Calistus Gentry: I mentioned
earlier that the State has taken the bull by the horns by undertaking the
following actions:
1. Selection of reference companies through an
international call for expression of interest containing specifications and
precise deadlines in order to put into production in the short term projects belonging
to companies that are not performing well.
2. Results of work by PRECASEM, carried out with World
Bank assistance, will enable improve coverage and knowledge of the Cameroonian
subsoil from 40% to 70%. The new anomalies detected will not be placed at the
disposal of the companies in the form of prospecting permit but rather will be
proposed to reference companies with specifications and precise deadlines.
3. Reinforcing bilateral co-operation in order to
construct infrastructures related to raw material mining. Hence, the State
through financing from Exim Bank of China, will build the railroad and ore
tanker terminal at the Kribi deep sea port.
4. Reinforcing the country’s energy supply by constructing
hydroelectric dams and valorizing gas resources to compensate for the energy deficit.
Local processing of at least 15% of raw
materials as provided for by the Mining Code, will contribute significantly towards
creating added value and increasing the gross domestic product. When News Breaks Out, We Break In. (The 2014 Bloggies Finalist)
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