INVESTMENT OPPORTUNITIES IN THE MINING SECTOR OF CAMEROON

Investing in Cameroon, an Asset.

In order to adapt to the demands of development and globalization, a new modern and attractive mining code has been drafted and published in 2001 under the title « Investing in the Cameroonian mining sector ». It is a challenge to reactualize and promote the Cameroonian mining sector through this new review « Investment opportunities in the Cameroonian mining sector ». in a context in which mineral resources in Cameroon have to be revalorised and a place of choice granted to the presentation of geological data to be assessed.

Four great domains constitue Cameroon’s geological mobile zone, domain reactivated to the panafrican towards 500 MY covering the greatest part of the territory, a craton in the South saved by the panafrican new era and stabilised since 200 MY, sedimentary basins essentially originating from the cretace and finally recent volcanic formations on the Cameroon volcanic line. Hundreds of mineral indexes and deposits of world dimension have been discovered due to this rich geological feature. According to this , the President of the Republic His Excellency Paul Biya said in his swearing address on November 3, 2004 « We have raw materials, gas, petrol, timber, bauxite, other minerals, agricultural products, let us transform them… We have scientists, engineers, managers let them work ». It is then possible to say that Cameroon geologically is promising.

Considering that field work has already been run less than 50% of the subsoil is known with accuracy, it should be noted that the exploration data does not vary, numerous substances are still to be discovered.

Investors and mining explorers, Cameroon is a privileged field for your activities. Is it not said to be « Africa in miniature ?». This assessment is made in all aspects of its mineral potential.

The new institutional approach of promotion of investments in Cameroon has been subject to law N°220/004 of April 19, 2004 which favours the opening of important prospects to investors in the domains of research and exploitation. It legitimises free initiative and devotes the primacy of the private sector while the State has peaked its intervention to 10% to play its role of regulatorand facilitator. This review presents the different articulations.

Cameroon due to its rich industrial network and the diversity of its basic productivity holds a leading position in the CEMAC zone sub region.

In accordance with President Paul Biya who placed his septennate under the sign of « Greater realisations », the drafting of a new industrial policy, which will lead to the realisation of major goals through performing strategies. It is a challenge to all of us and anyone to :

• visit Cameroon, a peaceful and safety country

• discover the riches of its subsoil which is a blend of all those found on the continent

• get advantage of the facilities of a legislation to make profitable investments.

But the essential factor of a sustained growth, powerful and long lasting is investment founded on industrial transformation, technology and innovation. Fulfilling the goal of promoting private investment adapted to globalisation stakes is the reason why the new institutional context , concretised by the new investment charter, foresees organisational mechanisms and incitative dispositions which operates a qualitative and quantitative major change which will lead to a real industrial change in the Cameroonian industrial field.

It is time to invest, for our common success in the high potential sector : the mining sector.

THE GEOLOGY OF CAMEROON

The geology of Cameroon is covered by 1 500,000 scale geogical maps compiled between 1952 and 1970.

A compilation of these maps at 1 : 1,000,000 scale was published in 1979 and the note by J.M Regnoult (1986) « Synthèse géologique du Cameroun » can be considered as explanatory to these maps. The author distinguishes four major geological formations across the country : a mobile zone, that is a domain reactivated in the « panafrican orogeny » around 550 my ; this formation covers the (1.1).

(suite 1.1) greater part of Cameroon, a craton in the south of the country, part of the « Congo Craton », which was spared remobilisation in the panafrican and stabilised at around 2000 MY, sedimentary basins, essentially Cretaceous in the west (the Douala basin) and in the north (Garoua and Maroua basins) and recent volcanic formation of the so-called « Cameroon Lineament », with associated anorogenic plutons belonging to the younger granites of Nigeria, and aligned N30°E in the west of the country and still active (eruptions of Mount Cameroon in 1999 and 2000).

Two new maps at 1 : 500,000 scale, were surveyed in the south of the country in the 1980s :

The Geological Map of south-west Cameroon covering the western part of southern Cameroon, south of the 4th parallel by the PNUD, which remains unpublished.

All these works led J.P. Vicat in 1998 to distinguish five geotechtonic complexes in Cameroon : the Craton, the Craton cover, the Panafrican chain, the sediementary basins and finally the volcanic cover of the Cameroon lineament.

The Craton

Located in the extreme south of the country, this formation constitutes the extreme northern portion of the Congo Craton, called the ntem formation and comprises charnockites, leptynites, gneiss and various granitoid (tonality, trondjehmites, granodiorites, syenites, etc), all cut by greenstone dykes (amphibolites and dolerites). These formations are estimated to be date between 2.8 and 3.6 Ga, i.e, they are Archean in age.

Three tectonic units are distinguished in the Ntem formation : from west to east, the Nyong, the Ntem and the Ayina Units. In each, greenstone belts have been identified.

The cover of the craton

Proterozoic in age, these rocks are located at the extreme southeast of Cameroon, near the border with the Central African Republic and Congo. To the west it is discordant with the Craton (Mbalam belt) and disappears northwards under the yaounde nappe that covers it partially. This Craton cover unit includes four successions, from the youngest to the oldest ; the upper carbonate Dja series ; the Bél-Libongo tillite complex ; the Boulou and Moloundou sandstones, arkoses, conglomerates and shales series of the lower Dja and finally the Lobéké Numerous dolerite dykes and sills occur with pillow lava structures and occasional syenite plutons.

The upper Dja carbonate succession deposited in the Neoprotérozoïc III (650-540 My) overlies both the Craton and the lower Dja unconformably. The Bélé-Libongo, Boulou and Moloundou tillite compexes are Cryogenian (850 – 650 My) and overlie the lower Dja series unconformably.

The Panafrican chain

The greater part of Cameroon’s landmass consists of formations put in place during the Panafrican orogenesis. Those from a vast E-W belt stretching from the Sudan to the Gulf of Guinea and extending into Brazil. This mobile zone belongs to the Panafrican Oubanguides chain which edges the northern part of the Congo craton (poidevin, 1984). The structure is that of a chain of collision doamins between the Congo craton southward, extending more than a hundred kilometres beneath the Yaounde nappe, the current limit of the Yaounde nappe correponding to the erosion limit.

The panafrican chain is cut by two great destral mylonitic shear zones trending NE-SW ; the Sanaga Fault and the central Cameroonian fault that cross the country from south-west to north-east. This panafrican chain includes two entities.

Cristallophyllian and migmatic formations of paraderived origin, at first quartzo-pelitic to volcano-sedimentary : Granitoïds which are either anatexic granites or syn and post-tectonic granites, the most numerous of which are calc-alkali.

The Sedimentary basins

Two types of basins can be distinguished: the Palaezoic and Cretaceous.

The Palaezoic basins

In the North of Cameroon, azoic volcanic-detrital deposits occur at Hoye near Poli and Mangbéi near the Chadian border, dated Devonian-Ordovician (370 – 490 My by K/AR) by Bessole and Lasserre (1977), unconformable overlying the Panafrican.

The Cretaceous basins

The history of the Cretaceous basins is linked to the opening of a rift valley system in western and central Africa that led to the opening of the Atlantic Ocean. These basins comprise :

• the fluvio-lacustrine deposits of the cretaceous;

• the great basins of the Bénoué and Mamfé regions with Aptain, cenomainian and Turonian sandstone (the Garoua sandstone) ;

• the coastal Rio-Del-Rey, Douala and Kribi-Campo basins with maritime deposits ranging from Cretaceous to the present.

These latter basins and particularly the formations dated Eocene and Miocene, contain oil and gas deposits and have been actively exploreed for petroleum , particularly in the Kribi-Campo and Rio-Del-Rey basins.

In addition another exploration zone is to be found in the extreme north of Cameroon, the Logone-Birni basin, occurring beneath Quaternary deposits and related to sedimentation of Lake Chad and analogous to the Chadian Doba oil fields.

The Cameroonian Lineament

This feature comprises a N30°E alignment of alkaline oceanic and continental volcanic edifices which began about 44 My and are still active today. In addition there are about sixty anoregenic plutons including (syenites, granites, diorites and gabbros), intruded from the Upper Cretaceous (73 My) to the Middle Eocene (40 My), this lineament can be followed from the Pagalu and Malabo islands in the Atlantic, to Lake Chad in eastern Cameroon.

MINING ACTIVITIES

LEXICAL TERMS OF THE CAMEROONIAN SUBSOIL RESOURCES

To this day, approximately 52 types of mineral resources have been assessed and each type having mining targets as follows, considering as mining target, each mineral occurance revealed since the geochemical anomalies to the deposits through the indexes and important indexes.

Gold

Apart from diamond, gold is the only precious mineral exploited in Cameroon at present. It a small scale exploration in alluvial and alluvial deposits. Exploitations in primary rock are rare.

Zones where gold panning takes place are found in the Eastern Provinces north of Faro in the High Adamaoua, Lom and Belel plateaus and east of Ngaoundéré. It is estimated that about 10,000 to 15,000 persons make a precarious living by gold panning. Current valuation indicate an annual production of more than 500 of gold.

Projects introduced by the Department of Mines are an attempt to improve the efficiency of the panners, to legalize the sector and to resume the control of at least part of the production.

In fact, gold occurrences are found more-or-less everywhere in the country, as well in the crystalline basement and in metamorphic rocks.

The only region where relatively significant contents are observe dis called the « District aurifère de l’Est », near the frontier with the Central African Republic and Chad. More than 90% of the estimated production of 20 tunes historically comes from the area.

The bed rock of the region is mostly divers syntectonic calc-alkali granitoïdes. Remobilization of basement took place during the Birrimian orogenesis. Certain granites also correspond to magmatic movements connected to the Panafrican cycle. Some of the occurrences of primary gold (goldbearing quartz veins, shear zones around mylonites with sulphides and gold) appear to have been linked at one stage to classic hydrothermal type mineralizations of peri-plutonic origin connected with these intrusives.

The primary Mborguéné gold « deposit » is located 30 km north-east of Bétaré-Oya. It occurs in the Lom series or Lom through corresponding to a supposedly birrimia age belt covering about 4000 km² overlying the Archean basement through the intermediary of the so called « border complex ». Here, gold is related to the siliceous up welling which accompanied the bed of granodiorites and monzosyenites along a shear zone. The contents of these gold-bearing quartz veins are generally between 0 and 9 g/t.The reserves for the Mborguéné’s deposit are estimated at roughly 3 to 4 tones.

The Lom series is considered to be proterozoic in age and presents evident analogies with the formations of the same age in west Africa (i.e., the Birrimian system), known for their very important resources in gold and exploited in Ghana, Mali, Burkina-Faso, Ivory Coast and Senegal.

Diamond

As far as diamond and gold are concerned, exploitation and distribution networks are currently purely informal. The main diamondiferous zone of Cameroon is between the 2^nd parallel (the same latitude as Colomines) and the 5th parallel, a zone forming a triple point with the borders of Congo, Central African Republic and Cameroon. The zone is a 70 km wide strip adjoining the border with the Central African Republic.

The Mobilong sector, south of Yokadouma appear to be the most productive area. These indication give way to the extension of a coarse detyrital formation of Cretaceous age occurring in the south-east and east of Cameroon. This formation was partially dismantled by erosionwith redistribution of material in successive phases reworking in the river systems.

South-West Cameroon

The systematic prospecting by BRGM from 1978-1985 (the so-called « South-West project Cameroon ») did not reveal any diamondiferous occurrences or indices. The study of circular structures with an ultra basic character was disappointing but several geochemically anomalous zones, favorable to the presence of kimberlites were revealed in the region of Ntem. One of them was identified as an ultra basic (harzburgite, Iherzolite) body.

However, no signs specifically indicating the presence of kimberlites were confirmed.

North and East Cameroon

Different prospecting operations by DMG and BUMIFOM gave some indications of the presence of diamond in the North on a tributary og the Faro and in Vina. These indications are however tenuous and small and are far from the main diamondiferous province.

The existence of diamond was revealed on 1950 by former gold prospecting companies NE of Batouri in the small tributary on the right bank of the Ndanbi (Boumbé II). Some exploitations are apparently located in the flats of the Ketté and on the terraces of Ndanbi and small right bank tributaries.

Uranium

There are no known exploitable uranium resources in Cameroon nor has there been any production. The sole interesting occurrence is that of Goble Kitongo.

The principal exploration work for radioactive minerals of the pas twas done by the French CEA during the period 1950-1969. General radiometric ground prospecting was done in certain known mineralised areas. General reconnaissance was done in North, Central and Southern Cameroon, as well as some selective airborne radiometric survering. Airborne radiometric surveying was run from 1958-1960 for selected areas in North, Centre then South Cameroon in 1967. the total area covered by these airborne surveys was 48,685 sqm. Ground follow-up of anomlies was undertaken in both case.

The IAEA committed an expert from 1970-1975 to assist and advise the Cameroon Department of Mines and Geology of theMinistry of Mines and Power on the national uranium exploration programme. The expert trained national staff and examined several anomalies in the Norhtern part of Cameroon but his main work was on the Goblé uranium anomaly where detailed geologic work, radiometry drilling (11 holes) gamma-logging, sampling and assaying was done. Four foreign training fellowships were also arranged by IAEA.

In 1975, a PNUD project was initiated to cover general exploration of the Dja series in the South-East of the country. The project include uranium amongst other minerals and some early geochemical samples by IAEA under and details are not known.

Cobalt-nickel

The presence of Cobalt & Nickel in Cameroun remained enigmatic until the discovery a few years ago in the East of the country of a vast zone rich in cobalt by Company GEOVIC Cameroun S.a.

Created in 1995, Company GEOVIC Cameroun S.A. led research tasks to the South-east of the country. The aforementioned work led in 1996 to discovered of a cobalt layer of international class and perhaps largest of the world. After the granting in 2003 of a licence of mining of 1250 km, GEOVIC began the installation from its first programmes of microphone-credits for an improvement of the local habitat and a company of safety.

In 2004, GEOVIC launches the study of environmental impact and as well as the final study of engineering for the single metallurgical method of extraction. Obtaining in 2005 of all the necessary licences coincides with the completion of the feasibility studies and the security of the financings of the project.

In April 2006, GEOVIC has to the Cameronian authorities the results of its study of environmental impact and social. This report/ratio reveals that the production of cobalt with Nkamouna in the East of Cameroun could create 700 jobs at the time of the phase of construction of the mine and more than 300 direct uses and approximately 1200 indirect employment at the time of the productive phase itself.

Glow of Akonolinga

It is an enormous alluvial layer evaluated with more than 3 rutile MT with reserves certified of 764.000 T on a surface of 31.200 km surroundings. The layer consists of layers from 1,5 to 4,5 m thickness with an average content of 1% rutile, covered with 1,5 m of topsoil, on which grows a more or less dense vegetable cover.

The measured reserves were drilled using a drill Banka 4 with a mesh of 500 X 50 m, with only one sample by hole in the layer of ores (argillaceous surface layer not sampled). Then the content of rutile was determined by extraction of heavy minerals with bromoforme, then the liquor of Clerici to extract the rutile.

Gemstones

At least 5 good sapphire targets were detected in the sedimentary sequence of the gulf of Mamfé, in the rivers Manaya and Nsananakati. The research tasks in 1967 by the BRGM gave a guaranteed minimum of 8304 G sapphire for 2107 G of gemmeous quality for the Nsananakati sector.

Sapphire has just been discovered in Adamaoua and is the subject of a cloud of artisanal exploitation on the level of 4 sites at least located in the Departments of Faro and Deo, Djérem, Mayo Banyo, Vina.

An index of ruby was found there thus that of the corundum indices which were also found in the sedimentary basin of Garoua. Also an index of ruby was found in the vicinity of the village Mwapack, 42 km in the West of Yokadouma.

Platinum:

2 small platinum indices were found on the one hand in the vicinity of village NKOM-AKAK, in the intrusive complex of Ntem between Kribi and Ebolowa, on the other hand in the furrow of Bibemi between Garoua and Kaélé.

Graphite

At least 5 indices found in the series of Lom around Bétaré Oya, in Yingui in the North-East of Douala, and Extreme-North around Mayo Pout and Mayo Swell.

Titanium

More than 65 targets were highlighted. The major part, expressed in the form of rutile and associated with disthenes and garnets, are in the vast paraderivé ditch of the group of Yaounde, extended in direction NW on more than 50.000 km ² and formed successively of paragneiss, mica schists, and the schistoquartzic series.

More than 40 licences of exploitation were listed there for the period of 1935-1955 during which Cameroun was 3rd world rutile producer after Australia and the United States.

The recent studies of the SERAK give the reserves of 3 Million tons for the zone of Akonolinga. Good concentrations expressed in the form of ilmenite are in sands of the maritime coast with a nonexhaustive evaluation giving 500.000 tons of ilmenite.

Disthene

Its concentrations are associated with those of the rutile in the group of Yaounde and covers the zone of the group of Yaounde. But 5 zones were the subject of an special attention: Nyiba river in the East of Edéa, Nanga-Eboko, Otélé, Akonolinga for economic reserves of more than 2 million tons. Tests of calcination accounting for 1450 with stage from 3 to 4 a.m.

Aluminium

Six bauxite indices and layers were highlighted among which the layer of Minim Martap with 1,116 billion tons with alumina 43% and silica 1,8%. Geological concerning this layer can reach 2 billion tons. One distinguishes from the more modest layers such as those from Ngaoundal (120 MT), Fongo Tongo (46 MT), Banguem (19 MT) and an good indicator with Foumban.

Oil

The 3 coastal sedimentary basins are recognized oil: Rio-LED-Rey, Douala and Kribi-Campo. Since 1977, oil is exploited in the only basin of the Rio-LED-Rey. From 1997-1998, it is also exploited in the basins of Douala/Kribi-Campo (Ebome Marine) even if it is to a lesser extent (10.000 barrels per day).

Other intracontinentaux sedimentary basins are the subject of a strong presumption of presence of hydrocarbon: basin of Mamfé, basin of Garoua and the basin of Logone Birni in the Far-North which makes vicinity with the basin of Doba in Chad from where oil will be extracted having to be transported by the Line Pipe through Cameroun until the broad one of Kribi.

Natural gas

The natural gas accompanies oil in all the basins seen above. However concentrations considered to be very important were discovered with broad of the basin of Douala /Kribi-Campo.

Lignite and oil shales

Four small brown-coal beds were found in Dschang, Bali, Foundong and Tabekong, as well as small layers of schists bituminuex in Figuil and in the basin of Amakoussou in the North of Garoua.

Iron

Approximately 25 targets and layers of fire were detected among which the layer of the Udders in the South of Kribi with 330 MT with Iron 30%, the layer of Mbalam in the South of Ngoila with 220 MT with Iron 60%, small layers of Nkom-Akak, Mewongo, Nkout, Ngoua, all related to the iron-bearing furrows of the Congolese craton which continue in Congo and Gabon.

The Bateke plate in the Extreme South-east of the country seems to carry iron ores detected by aéromagnetomètrie. The other indices are iron hats or ores of less importance. The potential of Nkolemboula is not given.

Chromite

Two alluvial chromite indices were detected in Nyamkaba in the South-east of Ngaoundéré.

Lead

Approximately 50 lead indices whose majority was revealed by work of inventory detailed in the South 4th parallel and who geologically are related to the group cratonic there of Ntem, with the paraderivé group of Yaounde, the iron-bearing furrows, the contact series of Dja, granitic base.

In the North of the 4th parallel, indices are known in the sedimentary gulf of Mamfé, in the series volcanosédimentaire of Lom, the base microclinized and granitized (like Sorombeo, Gouchoumin Ribao) in the sector of the furrow Rey Bouba.

Zinc

Approximately 12 indices were revealed in connection with the sedimentary gulf of Mamfé, furrow volcanosédimentaire of the sector of Rey Bouba, the iron-bearing furrows of the craton of Ntem.

Copper

Approximately 50 indices were highlighted in relation to the Unit of Bas-Nyong, the series of interior Dja, the contact of the base, series of Dja, the group of Yaounde, the Unit of Ntem, the iron-bearing furrows, the microclinized and granitized base, the major accident Foumban-Ngaoundéré, the series of polish, the ditch of Mbéré, the series of Yokadouma. The greatest number of indices are in the zone of detailed inventory of the South of the 4th parallel.

Tin

17 indices were revealed among which the layer of Mayo Darle of which the alluvia and éluvions it were the subject of an old artisanal exploitation with 6500 tons of cassiterites extracted from 1933 to 1968. the potential of this layer remains to be been defined. These indices are in connection with the young intrusive granites, the microclinized and granitized base, the iron-bearing furrows.

Wolfram

16 indices were revealed in connection with the group of Ntem, the furrows iron-bearing, the schistoquartzitic series of Yokadouma, the microclinized and granitized base. In Mayo Dala in the area of Mayo Darle, an evaluation gives 90.000 tons of Wolframite.

Colombo-tantalite

2 indices of Colombo-Tantalite revealed in connection with the young intrusive granites. In particular stanniferous granite of Mayo Darle and the zone of Garga Sarali.

Molybdenum

4 Molybdenum indices of which that of Ekomedion related to the young granite. The others are related on the series of Polish, the iron-bearing furrows, the granitic Unit of Ntem, (craton). Molybdenum was also found with the tin layer of Mayo Darle.

Barium

2 indices were detected in connection with the Unit of Ntem.

Arsenic

At least 13 indices are known in connection with the microclinized and granitized base. Arsenic appears to have connection with the mineralisation of gold, at least in Be-Cameroun.

Manganese

12 indices are known in connection with the remains of serpentinites, the conglomeratic sandstone, the laterite, paragneisses, basalts. It must constitute an exploitable layer in by-products within the framework of the Cobalto-Nickeliferous laterites of the area of Lomié.

Rare earths

At least 12 monazite indices were revealed in connection with the microclinized and granitized base. Interesting cibles could be highlighted since the interest will have been related to these substances.

Zircon

Several Zircon indices are announced in particular on the group cratonic of Ntem and the old granitic base of Adamaoua. But 2 indices drew more attention on the level of Eboundja.

Thermominérales sources

At least 30 zones of thermominérales sources are listed in connection with volcanic zones of Cameroun South-west, West, the North-West, of Adamaoua, North and Extreme-North. One of it is the subject of a good industrial exploitation by Supermont, with the foot of the Cameroun Mount. In general, each zone has several sources.

Limestone

6 small limestone layers were identified among which the layer of Figuil (600 000 T of reserves) which is the subject of an exploitation for the cement factory, the layers of Moungo, Log-Bajeck, of Kompina, in the sedimentary basin of Douala, then travertines of platings of Ngol and the layer of Mintom, in the basin of the higher series of Dja.

Marble

A marble layer is known in Bidzar, one of the fields having reserves of 2.500.000 T.

Pozzolana

A pozzolana layer is in exploitation with Djoungo (between Douala and Nkongsamba), but of work of evaluation can highlight large layers of volcanic ash for pozzolanic purpose in particular in the volcanic zones of South-west, the West and the North-West where the Strombolian activity was frequent.

Sand

Not only there exist industrial quantities of sand like construction material and development, but there exists also pure sand for glassmaking, following the example layer of Manoka (maritime coast) exploited by SOCAVER for the production of the bottles used by the breweries.

Mica

A small muscovite layer was highlighted at Mbiofong, in connection with the pegmatite seam of which a part (500 m3 of pegmatite) had been exploited by the Germans about 1922.

Olivine

Olivine indices were detected along West Coast (Limbé-Idenau). It is to be noticed that basalts resulting from the current eruptive activity of the Cameroun Mount are very rich in olivine. Thus the circumference of the Cameroun Mount and other basaltic solid masses could appear interesting.

Asbestos

Two indices of asbestos were detected in Bayara in an environment of basic rocks and in Ngambe, inter laminate in gneiss.

Talc

At least 4 talc indices were revealed: in Baonia in North Cameroun (hydrothermal layer), Mayo Swell (Extreme-North) in connection with ultrabasaltic rocks; then the contact between the bodies serpentinic of the North-East of Lomié and the boxing schistoquartzitic series is talcous. Finally talc is related to the Asbestos index of Ngambe.

Vivianite

A small vivianite layer was found in Anloua in the vicinity of Ngaoundéré. The big size of its crystals in rather made a mineralogical curiosity for museums.

Kaolin

Two layers were highlighted, like products of deterioration of the tachytic rocks of the Mounts BAMENDA and Mounts BAMBOUTOS. Generally the kaolin frequently meets like product of deterioration of the acid and alkaline rocks (syenites, trachytes).

Eleolite syenite

Two layers with Ebondja and on syenitic axis AKONGO-LOLODORF.

Phosphates

Two indices. sedimentary basin of Douala and with the East of Rey-Bouba.

Garnets

Great garnet concentrations meet in alluvium, associated with the rutiles and disthene in the vast corridor with the group paraderivée with Yaounde. Other concentrations are announced between the rivers Rinda and Mbéré (Ngaoundéré Is) and in an affluent of Mayo Sala or garnet is associated with corundum and in the environment of which a diamond was found.

Topaz

Two indices were detected.

Pyrochlore

Two indices on the sheet of East of Garoua

Antimony

An index on the plate of NODJO in Adamaoua

Pyrite

A layer in the area of KOMPINA in the North of Douala.

Carbonic gas

More than 350 million m3 of carbonic gas for the lake Nyos and several tens of million of m3 for the lake Monoun are stored in the depths of these 2 lakes which must in particular be the subject of a degasification controlled in the briefs times for safety reasons. There is progressive food of these CO2 lakes (5 million m3 per annum for the lake Nyos).

Salt

18 sources and saline ponds exploited artisanalement in the gulf of Mamfe. Other salt layers must exist in our coastal basins in particular.

Clay

With the sight of its situation in equatorial and tropical zone, Cameroun is a vast lateritic clay tank which only requires to be exploited. There exist also industrial quantities in the various sedimentary basins like that of Douala as well as the alluvia of the various rivers.

Because of its particular uses, the kaolin was treated separately.

Stone

This development and building machinery is found in quantity more than industrial in our country. The group cratonic of Ntem, the group of Yaounde at least its components paragneissic and quartzitic, the old base of Adamaoua, the volcanic products, the young magmatic intrusions, all this unit which covers at least the ¾ territory is formed of material for this use.

In this chapter, we mention the eleolite syenite layers in the geographical South-west of the country which can have other specific uses in particular as industrial flux.

Water resources

The potential of Cameroun is impressive: the surface water which appears by a dense hydrographic network with a considerable number of main sewers (hydroelectricity), the limnic, marine hydrological resources and the subterranean water in the coastal sedimentary basins or will intra continental, but also in the faulted crystalline base.

LEGAL AND STATUTORY TEXTS

FISCAL AND CUSTOMS ADVANTAGES

Attribution, the renewal, the transfer of the mining titles are fixed to the payment of the fixed rights. Surface royalties are also paid annually for each mining title. The advantages hereafter are granted to very undertaken or company of research or mining:

• is granted to any holder of prospecting permit the benefit of the mode of the temporary admission for the materials used for research like for the professional equipment, machines, apparatuses, vehicles of building site, spare parts and of replacement. In the event of transfer or of sale in the state of this material or this equipment, the taxes and the customs duties will be perceived according to the regulations in force.

• The advantages referred to above are also granted to the subcontractors and to suppliers of the holders of prospecting permit.

• The holders of prospecting permit profit from: the exemption of the fees registration relating to the mining operations except for those which are related with the beams and hirings with use of dwelling; the exemption of the following taxes: Corporation taxes (I.S.); Income taxes industrial and commercial (B.I.C.); Tax proportional on the movable capital incomes (T.P.R.C.M.); special tax on remunerations paid abroad; tax on added-value (VAT).

• The holders of a licence of exploitation profit during the phase from construction from the mine as specified in mining convention, exemption of the taxes and customs duties on the materials, materials, inputs and capital equipment necessary to the production as on the first batch of spare parts which should accompany the equipment by starting, except for the vehicles of tourism, the materials and office supplies. They also profit: exemption of the taxes and customs duties on the equipment of replacement in the event of technical fire and on the equipment having to be used for an extension of the exploitation;

• Of the complete exoneration until the date of the first commercial production noted by joint decrees of the minister in charge for the Mines and the minister in charge for Finances, the Taxation and Customs duties of the importation of the inputs; on the importation of materials and hardware requirements to the construction of the buildings; of a complete exoneration of the taxation and customs duties of the specific lubricants.

• All the customs exemptions envisaged in the present law exclude the taxes for rendered services.

• Subject to the specific advantages granted by the present law, the holder of a licence of mining is subjected to a tax mode of common right.

• However, until the date of the first commercial production noted by joint decrees of the minister in charge for the Mines and the minister in charge for Finances, it is exonerated from the VAT to the importation on the materials and equipment under the conditions above.

• Companies and mining companies remaining exonerated from construction to the licence.

• The companies and titular mining companies of a licence of exploitation profit from spreading out on one (1) year, of the payment of the fees registration on the acts of creation of company, extension and increase in the capital. The amount of the rights can be split and paid as follows: the first third at the time of the deposit of the act to the formality, the second and the third third semi-annually and this, in the month which follows the expiry of the period.

• The intended products with export are subjected to the rate-zero of the tax on added-value (VAT) when the aforementioned products are fixed with this tax. However, the products put at consumption on the local market are liable to the rights and taxes which strike the imported similar products.

• Is exonerated, the fees registration relating to the mining operations, other than those which are related with the rates and localizations with use of dwelling.

• During all the period of validity of a licence of exploitation, the rates and rules of tax base, rights and taxes will be stabilized on the level where they were at the date of attribution of the licence of exploitation.

• any provision more favorable of a new tax and customs mode of common right will be extended to the holders of licence of exploitation if they make the request of it.

• Freedom to transfer the capital and the incomes is guaranteed to the foreign natural persons and morals which carry out a mining investment financed by a contribution in dévises.

• The foreign people who carried out mining investments or which occupy an employment in a Cameronian mining company have the right, subject to the regulation as regards exchange, to transfer in the currency yielded to the moment from the constitution of the aforesaid investments dividends, products of any nature, funded capital, produced liquidation or realization of their assets, wages, as well as the national insurance contributions and pension funds.

PENAL DISPOSITIONS

- is punished of a fine of five hundred and thousand (500.000) to five million (5.000.000) francs CFA and of a ten (10) days imprisonment with one (1) year or one of these two sorrows only whoever:

- a career without authorization exploits, nor allowed, even on its own grounds, the grounds of the public national field, the national field, the private field of the State or on private grounds; transport or sells materials of career coming from an exploitation not - authorized; the same sorrow is applicable to any holder of a prospecting permit which has products extracted during its research tasks without making of it the statement with the Administration charged with the Mines.

- is punished of a fine of five million (5.000.000) to twenty-five million (25.000.000) francs CFA and of a imprisonment of one (1) month at two (2) years or one of these two sorrows only, any holder of a mining title, a licence or an authorization which:

- devotes itself to controls activities by the present law without conforming to the rules relating to safety, hygiene and environmental protection:

- does not conform to the regulations of the regulation on safety and the hygiene worked out in accordance with article 84;

- does not conform in the fifteen days or the cases of extreme urgency to the injunctions of the agents of the Administration charged with the Mines relating to the security measures and of hygiene, safeguarding and management of the environment and rehabilitation of the exploited sites.

• .- is punished sorrows of the article preceding whoever omits:

• - to provide to the Administration charged with the Mines, in the intended deadlines, the information and documents required under the terms of the mining regulation; to hold regularly up to date the documents required by the mining regulation or refuses to present them to the agents entitled to control them; to discharge fixed rights, surface royalties and ad valorem taxes or whoever undervalue the chargeable value of the extracted products; to make available of the Administration charged with the Mines of the accident which has occurred or a danger identified in a building site or an exploitation or their dependences or whoever is delivered to mining activities or of career in a closed or protected area.

them sorrows envisaged with the subparagraph 1st above apply without damage of the provisions of or Code the General Tax Code of the recording, the stamp and Trusteeship.

- is punished of a fine of ten million (10.000.000) to fifty million (50.000.000) francs CFA and of a imprisonment of two (2) to five (5) years or one of these two sorrows only whoever:

• - or a mining title or a mention modifies falsifies on the registers of the titles, the mining land register and the charts of the Administration charged with the Mines; provides inaccurate information knowingly in order to obtain a mining title, a licence or an authorization of exploitation of career; modify a perimeter regularly allotted; destroyed, moves or modifies in an illicit way of the signals or terminals;

• devotes itself to controls activities by the present law without mining titles or of authorization: out-of-date or not valid.

• - very allowed exploitation or any concession mining delivered before the coming into effect of this law remains valid until the expiry of the period of validity.

• them titular of the mining titles allotted before the coming into effect of this law are held to conform to it within two (2) year as from the date of its promulgation.

At the end of this period, the titles not put in conformity are automatically withdrawn.

them mining companies are given exemption granted by the provisions of the former texts can also profit from the more valid provisions of this law if they make the request of it.

AUTHORIZATION OF THE LICENCES AND LICENCES MINING

Name	Conferred rights	Duration	Maximum extent	Renewal	Standing fixed overheads in Euro	Competent authority in load
1- Authorization of Prospection	Exclusive right	Three (3) years renewable	Only one polygonal block of less than 10.000 km ²	Indefinite duration each one for one period one year	Guarantee = 833,33 Renewal = 1666,66	Minister in charge for the Mines (an order)
2- Licence of exploitation	Right nonexclusive and nontransferable	One (1) renewable year	Only one polygonal block of less than 1000 km ²	Four (4) times, each two years wide reduced to half, extended minimum 62 km ²	Guarantee = 2000/km ² Renewal = 3000/km ² Transfer = 8333,33	Minister in charge for the Mines (an order)
3 - Licence of mining	Exclusive right defined in the convention of exploitation	25 years renewable	Defined in the feasibility study. Only one polygonal block within the former licence of exploitation	Indefinite but depend over the duration on the guarantee each one for one period 10 years	Guarantee = 8333,33 Renewal = 16666,66 Transfer = 41666,66	The President of the Republic (Decree)
4- Declaration for the use of the career	Right nonexclusive	Two (2) years nonrenewable	To define in the declaration	Nonrenewable	/	Departmental delegate in load of the Mines (receipt of declaration)
5- Declaration for the artisanal use	Right nonexclusive	One (1) renewable year	To define in the declaration	Indefinite duration each one for one period of 1 year	/	Departmental delegate in load of the Mines (receipt of declaration)
6- Declaration of the evaluation of an old career	Right nonexclusive	To define in the declaration	To define in the declaration	Nonrenewable	/	Provincial delegate in load of the Mines (receipt of declaration)
7- Authorization of prospection of quarry materials	Nontransferable	One (1) renewable year	Only one polygonal block of less than 10.000 km ²	Indefinite duration each one for one period four (4) years	/	Minister in charge for the Mines (an order)
8- Temporary authorization of mining (career)	Exclusive right to use in twelve months	Two (2) years nonrenewable, one year renewable	To define as gift for service	Nonrenewable (temporary career)	Gift= 1666,66	Minister in charge for the Mines (a decision)
9- Permanent Licence of exploitation of a career	Exclusive right to use in twelve months	Five (5) years renewable	To define as gift for service	Indefinite duration each one for one period three (3) years	Guarantee = 1666,66 Renewal = 2500 Transfer = 4166,66	Minister in charge for the Mines (an order)

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