The Cameroonian government and CAMINCO SA have signed a major mining agreement for the operation of the small Mborguene gold mine in the Eastern region. This agreement, which guarantees significant socio-economic benefits, provides for active state participation, job creation, and local development.
This Friday, the Acting Minister of Mines, Industry and Technological Development, Professor Fuh Calistus Gentry, presided over the signing ceremony of a mining agreement between the State of Cameroon and CAMINCO SA. This historic agreement concerns the exploitation of the small Mborguene gold mine, located in the East region. Covering an area of 500 km², the mining site contains a deposit of five million tonnes of ore with an average grade of 1.89 g/t. This agreement, which paves the way for responsible and profitable exploitation, is part of Cameroon’s vision to develop its natural resources while guaranteeing economic and social benefits for local populations.
A fair distribution of profits
The agreement provides for strong state involvement in the management of mining resources. In addition to the 10% of shares held free of charge by the state, a production-sharing mechanism has been established. Thus, from the first commercial production, 13% of the gold produced by CAMINCO SA will be redistributed: 3% for the state, 1% for the benefit of the National Mining Company (SONAMINES), 4% for local shareholders, and 5% for the ad valorem tax.
Significant economic and social benefits
In addition to production sharing, several financial contributions reinforce the benefits of this agreement: A mining sector development fund funded with 0.5% of the gross annual production value, A special account for the development of local capacities financed by 0.7% of CAMINCO SA’s turnover excluding taxes, An export tax set at 5%, Land concession fees amounting to 75,000 FCFA per km² per year. The agreement also provides for the creation of more than 100 direct jobs and numerous indirect jobs, thus boosting the local economy.
A commitment to local development
Beyond financial contributions, CAMINCO SA is committed to investing in local infrastructure, technology transfer, and training. A training center dedicated to mining and ore processing techniques will be built, allowing for the reception of at least 20 academic trainees per year from specialized schools and training institutions. In addition, the company plans to contribute to the development of the project area, particularly by improving infrastructure and increasing the purchasing power of local communities.
