Directory of major Projects

Field of industry and services

1) Construction of a factory for the production of chemical fertilizers;

2) Construction of a cement factory in Limbe;

3) Extension of ALUCAM;

4) Construction of a new aluminium smelter in Kribi;

5) Creation of an economic, industrial and technological park in Edea (Edeatech);

6) Natural gas liquefaction Unit in Kribi;

7) Construction of CIMAF cement factory in Douala;

8) Construction of DANGOTE cement factory in Douala;

9) Construction of MINTOM cement factory;

10) Construction of BOEM Steel Industry (cement factory);

11) Sugar Project in the Bertoua-Batouri interzone;

12) Creation of a cocoa beans processing plant in Douala;

13) Cameroon Transformer: manufacturing single and three-phase transformers in Edea.

RENEWAL OF APPROVAL

The application for renewal of approval, presented in the same form as the original application must be submitted to the Minister in charge of industry four (4) months before the expiry date of the current authorization. The renewal fee for a license are set at four hundred thousand (400,000) francs CFA for successive renewals.

PERMITS AND RECEIPTS ISSUED TO CLASSIFIED FACTORIES

-Authorization to set up and operate first-class factories;

- acknowledgement of receipt of declarations for setting up and operating second-class factories.

Note: The ranking is based on the hazards or nuisances generated by the activity of the factories (methods, equipment, materials ....)

GENERAL DATA ON THE PROJECT

1. CONTEXT AND JUSTIFICATION

Cameroon has a huge geological potential for a number of minerals that, if well managed, could contribute to the country’s economic growth. Cameroon is endowed notably with large deposits of iron ore, gold, bauxite, diamonds, limestone and nickel. However, despite its geological wealth, mining is not yet playing a major role in Cameroon’s development, and the mining sector remains on the fringe of the economy.

As concerns mining, a number of projects are in advanced stages. These include: the Mbalam iron ore project promoted by CamIron, the Nkamouna nickel-cobalt project near Lomie, owned by Geovic, and the bauxite development project in the Adamawa at Minim-Martap and Ngaoundal, promoted by Cameroon Alumina and the Mobilong diamond mining project near the border with Central African Republic, promoted by Cameroon & Korean Mining.

Nevertheless, only two mining licenses have been issued to date: one for nickel-cobalt operation in 2003 and one for the C&K diamond project in 2011. Mining proper has not yet begun on the field. Cam iron recently signed a mining convention with the Government and the mining license shall only be issued when certain conditions have been met.

At the purely geological level, geological cartography and the overall knowledge of the country’s mineral potential is still very limited and currently seem outdated. Geophysical and geochemical data are still inadequate for vast areas or need to be reinterpreted using modern technologies and approaches when they are available. Geologists reveal that current, more than 50% of the territory remains unknown.

Cameroon is currently at an important crossroads as far as the development of the mining sector is concerned. Sound management of revenues from the extractive industries represents a great potential to fight poverty and contribute towards sustainable development. As a matter of fact, the mining industry generated direct and indirect jobs. It enables technology transfer and generates substantial revenues which could enable the government to develop major infrastructures, engine of development for other sectors.

 2. THE PROJECT OBJECTIVE

The Project Development Objective is to improve (i) the efficiency and transparency of the mining sector management and (ii) the frameworks for sustainable mining development. To achieve this objective, the project will focus on institutional strengthening and on the local/regional integration of mining activities. It will contribute to the strategic objective, which stretches beyond the scope and time-line of this project, of increasing the contribution of mining to sustainable growth and development. In addition, it will contribute towards government’s effort in development an enabling business climate in the sector, in improving transparency, access to information and facilitation of dialogue among stakeholders in the sector.

Viewed from this standpoint, the project is fully in line with government’s ambitions spelt out in the document « Cameroon : Vision 2035 », which focuses on mining and the sound management of its natural resources (mines, forests, agriculture, etc.) as well as on the rapid development of its roads, railways, airports, etc. infrastructures.

The project equally fits under the first pillar of the World Bank Country Assistance Strategy, supporting competitiveness, based on improving efficiency, transparency, and sustainability in the mining sector management.

 3. PROJECT BENEFICIARIES

The beneficiaries will be

• Cameroonians at large through positive contributions made by economic activities development around mining areas;
• private sector through improvement of the investment climate and infrastructure development catalysed by mining sector investment ;
• mining companies that will benefit from improved availability of geological data to guide exploration, improved environment for the granting and security of tenure of mineral rights and an increased availability of qualified national human resources;
• mining-affected communities who will benefit from arrangements to provide social infrastructure and local economic opportunities and measures to reduce, mitigate and compensate for mining related risks.

 4. RESULTS INDICATORS

Although the major benefits of mining investments are best measured over a longer time horizon (Contribution to economic growth and development), the indicators summarized below will be used to measure progress over the life of the Project.

1. Mining sector management efficiency: Number of days taken to issue mineral rights;
2. Mining sector management transparency: Public online access to historic and newly acquired geo-data information;
3. Frameworks for sustainable mining development agreed:

• Guidelines for the management of mining revenue at the local level issued
• Tools for local development planning disseminated
• Guidance on local supply chain development disseminated

5.    PROJECT DESCRIPTION

The Project has three components:

Component A. Access to Mineral Resources and Governance of Mining Operations

The main objective of this component is to improve knowledge and access to mineral resources as well as the management of extractive operations. It includes a geology programme, support to rights management and monitoring of mining operations, mechanisms intended to strengthen transparency and accountability in the mining sector.

Component B. Integration of Mining into Local and Regional

The mining industry usually operates in remote region of the world, very often sensitive at the social and environmental levels. In Cameroon where industrial mining is yet at its early stages, this entails a certain number of challenges at the level of local and regional development. Exploration activities raise a lot of expectations and sometimes generate conflicts with such activities as land conservation or other land uses. At the same time, fundamental uncertainty concerning prospecting and exploration of unknown mineral resources is not often understood. Based on international experience, mining activities in Cameroon, especially when they are accompanied by major infrastructure developments, may generate more “shocks” than anticipated by the Government.

B.1 Mineral Resources Dynamic Management System

In accordance with Law No. 2011/008 of 6 May 2011 to lay down orientations for regional development and sustainable development in Cameroon, Government intends to launch regional development activities in all the regions. Within this framework, support will be provided to all the regions where mining and the development of infrastructure may conflict with the activities of land conservation and other land uses.

B.2 Coordination between Mines, Forests, and Environment Stakeholders

A sound analysis of potential conflicts and systematic and official resolution methods are necessary.

B.3 Local and Regional Linkages

We have learnt from international experience that mining operations also presents many social risks. Mitigating some of the social risks induced by mining operations requires empowering local communities and municipalities and other stakeholders in the mining sector, promoting new economic activities and improving the efficiency of social services in mining areas.

B.4 Framework for Mining-related Infrastructures

This sub-component will support activities to facilitate the development of adequate PPPs and increase chances exploiting national mineral resources in a sustainable manner.

Component C. Management and M&E of the project

A Project coordination has been put in place to support the Project Coordination and management of procurement, financial management, and disbursement as well as the monitoring and evaluation of project implementation.

6. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS

Three entities are responsible for the Project.

The Ministry of Mines, Industry and Technological Development (MINMIDT), is responsible for the implementation and oversight of the Project.

The Steering Committee is the organ for consultation, orientation and coordination of Project implementation. It is chaired by the Minister of Mines (MINIMIDT).

The Project Coordination Unit is responsible for day-to-day Project activities

CAPAM

The Artisan Mining Support and Promotion Framework (CAPAM) was set up in 2003 by the Prime Minister, Head of Government.

Between 2005 and 2009, it carried out the first phase of the "Mining Development Support programme" called "Support and Organisation of Mining Craft" project. The first phase of this program was financed after it was deemed eligible for HIPC funding worth 4,668,920,000 CFAF.

The current drive in mining development is part of the significant impacts of the implementation of the first phase of this programme.

Upon completion of this phase, CAPAM consolidated its position as stakeholder in the mining sector and driving force for socio-economic development in the Sub-Divisions and as operational and secular unit of the Ministry in charge of Mines and the State. It also stands as a concrete example of the implementation of the growth and employment requirements and the materialisation of the Growth and Employment Strategy Paper (GESP).

CAPAM has become a machinery with an important asset base in expertise, mastery of realities on the field, human, material and financial resources, relevance of the operating mechanism, trust in investors and mining operators, established partnerships.

The draft decree transforming CAPAM into a Mining Activities Support and Promotion Centre has been validated by the Minister in charge of Mines, the Prime Minister, Head of Government and is awaiting approval by the Head of State.

The second phase of the programme aims at consolidating and further developing all these achievements.

The setting up of CAPAM was prompted by the following observations:

•   Available investment following interest in Cameroon's mining potential. The need to continue promoting and upgrading this potential;

•  Poverty, an essential economic potential for available investment; the need to bridge the poverty gap with relevant micro projects, projects, mechanisms and programmes which have positive and quantifiable impacts on poverty alleviation and growth;

•  Easing the relationship between the potential that is worth interest and available investment. The need for Cameroon to master national and international financial engineering circuits in order to raise funding and value its potential which is worth interest;
•    Production drive to the detriment of consumption drive in local communities. The need to ease the popularisation of this drive;

•    Current deficit in upgrading the known mining potential of Cameroon. The need to upgrade recognised types of mining potentials in each of the 371 Sub-Divisions of the country. They include precious substances; base metals; energy substances; industrial minerals; building, development and decorative materials and water resources.

•    More than 50% of the country is unknown in terms of mineral and geological information; it is important to improve mineral and geological information by discovering new mineral targets;

•    The need for Cameroon to concretely implement the Growth and Employment Strategy Paper (GESP);

•    The need for the country to increase its growth rate to double digits;

•  The need for Cameroon to attain its emergence goal by 2035 from current actions;

•    The need for the population and communities to become local engines of wealth production, to increase and diversify national production in view of contributing significantly to the Gross Domestic Product;

•    The need for Cameroon to secure its mining products in order to obtain national statistics and contribute towards growth, and also provide security for mining sites and stakeholders;

•    The need to better upgrade and process national products locally in order to add their value, revitalise the country’s industrial fabric, strengthen the technical and technological capacities of local stakeholders, and diversify trades for local human resources with strengthened capacities:

•    The need for connection and harmonious synergy between small and large enterprises in general, as well as small and industrial mines;

•   The need for Cameroon to have a coherent and relevant programme with production being its source of growth, which includes not only production activities but also all socio-economic aspects that contribute towards improving the living conditions of the people concerned including related infrastructures;

•   Within the framework of the implementation of the decentralisation and balanced development policy in all the localities of the country, the need to have a program that develops specific potentialities of each of its 371 Sub-Divisions;

•    The need to put in place and implement a self-reliant development mechanism which is based primarily on the entrepreneurial skills of the local population with possible contribution from partners;

•    The need for the State of Cameroon to be the central driving force for the country’s production and economic growth. The State should be part of a mining and socio-economic holding company with prospects of having subsidiary companies in each of its Sub-Divisions;

•    The need to have a national centre of expertise whose role is to boost socio-economic development in the Sub-Divisions;  

•    The need to henceforth give priority to the performance of appointed officials;

•    The need to put in place a programme mechanism that will ease access of youths of all ages, sexes, levels of education to become either individually or collectively entrepreneur-producer as opposed to the prevailing employee-consumer habit.

All these needs justify the "Mining Activity Development Support (CAPAM)" programme designed to satisfy the concerns listed above and to constitute an integrated development model which not only includes other sectors of the economy but can also be applied to them.

For more information, go to the CAPAM website: www.capam.cm