MINING : ANOTHER CONVENTION…

The Minister of Mines, Industry, and Technological Development, Professor FUH CALISTUS GENTRY, presided over the signing ceremony of the mining convention between the State of Cameroon and CAMINCO S.A. company for the operation of the Mborguene gold mine in the East region.
This historic agreement, signed today, offers significant socio-economic benefits for Cameroon in general and the local population in particular. In addition to creating more than 100 direct jobs and several indirect jobs, it is expected to make a substantial contribution to the national economy.
The exploration work, conducted over an area of 500 km², revealed a deposit of five million tonnes of ore with a grade of 1.89g/t. It is worth noting that the agreement also includes a significant government contribution. In addition to the State’s 10% free shareholding, a production-sharing mechanism has been established to allocate 13% of the gold produced by CAMINCO S.A. from the first commercial production. This comprises 3% for the State, 1% for SONAMINES, 4% for local shareholders, and 5% for the ad valorem tax.
In addition to this production-sharing mechanism, there are other financial benefits, including:
• A mining sector development fund at a rate of 0.5% of CAMINCO S.A.’s gross annual production value;
• A special local capacity development account at a rate of 0.7% of CAMINCO S.A.’s total pre-tax sales;
• State concession fees set at 75,000 FCFA/km²/year;
• An export tax at a rate of 5%.
CAMINCO S.A., represented by its CEO, Mr. Roger BOGNE, also plans to develop infrastructure, transfer technology, build a training center for ore mining and processing techniques, provide at least 20 academic placements annually for students from mining and quarrying schools and training centers, develop the project area, and increase the purchasing power of local communities.
This historic event was attended by several members of government, the General Manager of SONAMINES, elites from the East region, CAMINCO S.A. managers, and various guests.