Are you aware that the mining business is one of the most profitable businesses in the world?

So investing in it will likely give you high returns. We will talk about a country that has immense mining potential. And the best part? Most of it has not been explored yet.

Central Africa is full of resources. Cameroon, located in Central Africa has a wealth of valuable minerals. These natural treasures can improve the country’s economy and lead to development. Investing in it is likely to get you profitable returns.

Today, we’ll uncover the vast bauxite fields of Adamawa and the cobalt and nickel treasures of the East Province. We will see what the future holds for these minerals.
Without further ado, let’s begin —

Cameroon’s Diverse Mineral Wealth: History and Current Condition

Cameroon first developed its mining sector during colonial times and saw a boost during World War II. Back then the mining sector contributed 20% to its GDP, but this fell sharply after independence to less than 1%. The country has artisanal and small-scale mining but there’s limited data on its productivity and income. In the 1970s, significant deposits of gold, diamonds, iron, and other minerals were discovered. Yet mining remains underdeveloped, contributing minimally to the GDP.

Efforts are being made to boost the sector to attract private investment. much of Cameroon’s mineral wealth is still undiscovered. There is potential for further exploration as less than 50% of the country has been mapped for minerals. A new trend of small-scale mining, led by Asian investors, is emerging in East Cameroon.

Cameroon is a country with a variety of mineral resources. These include bauxite, iron ore, gold, diamonds, cobalt, nickel, and manganese. However, most of the resources have not been exploited yet. Substantial infrastructure development would be required for their exploitation. Only 40% of the territory has been explored so far. The country has issued over 167 exploration permits.

Bauxite:

For the last decade, the demand for bauxite worldwide has increased by 255%. It is a primary raw material in the production of aluminum. Around the world, only a few countries can produce aluminum, and Cameroon is one of them.

Bauxite is one of Cameroon’s most notable mineral resources. It is available in the Adamawa region. The Minim-Martap and Ngaoundal deposits are one of the largest bauxite reserves worldwide. Estimates suggest over a billion tonnes of high-quality bauxite in these sites. Once developed, these deposits can make Cameroon a significant player in the global bauxite market.

Iron Ore:

The Mbalam-Nabeba project is a major iron ore project. It lies on the border of Cameroon and the Republic of Congo. This project aims to exploit vast iron ore reserves. This can contribute to the local economy as well. This will also provide employment opportunities.

The Nkout iron ore mine was acquired by the International Mining & Infrastructure Corporation (IMIC) for $190 million. It was initially explored by Afferro Mining. The mine has potential reserves of 700 million tons of iron ore. It is 330km from the Kribi deep-water port which is under construction. The lack of a rail line has delayed operations. However, IMIC plans to build the necessary infrastructure to transport the ore and start production.
There is opportunity for growth in iron ore production.

Gold and Diamonds:

Cameroon’s eastern regions, such as Batouri and Bétaré-Oya, are famous for their gold deposits. Artisanal mining of gold and diamonds is a common activity. Large-scale industrial mining is still developing. Gold production is from eluvial and alluvial deposits. Artisanal mining produced 1,600 tons of gold and 10,000 carats of diamond. The potential for discovering larger, more lucrative deposits remains high​.

Cameroon started its diamond production in the Mobilong diamond field. Mobilong diamond field is its first-ever industrial diamond mine. The mine has an estimated 416 million carats of gem-quality and industrial diamonds. C&K Mining, the joint venture running the mine, plans to produce about 800,000 carats annually. It also runs semi-industrial gold mining operations in the East region.

Cobalt and Nickel:

The Nkamouna cobalt-nickel-manganese project is located in the East Province. It is another vital asset for Cameroon. This project is notable for its large reserves of cobalt and nickel. They are essential for producing high-performance batteries and other advanced technologies. Nkamouna-Mada has 68.1 million tons of reserves. It has 0.26 percent cobalt content, 0.66 percent nickel content and 1.48 percent manganese content.

Major Mining Projects

Several key mining projects are ongoing in Cameroon. These are:

Nkamouna Project:

The Nkamouna project has 68.1 million tonnes of ore reserves. It includes the development of Nkamouna and Mada open-cut mines. It is in the east of Cameroon. This project is crucial for meeting global demand for these metals. This can be useful for various high-tech industries​. Power supply for the Nkamouna mine project will be provided by high-speed diesel generator sets.

The project’s annual production targets include:

13.5 million pounds of cobalt
7.25 million pounds of nickel
138 million pounds of manganese carbonate

Minim-Martap Bauxite Project:

The Minim-Martap bauxite mine is located in the Adamawa region of Central Cameroon. This project will become one of the largest bauxite mining operations globally. Australian firm Canyon Resources is working to develop this. It will create jobs, increase exports, and improve the infrastructure of Cameroon.

It involves the extraction of 108.91 million tonnes of high-quality bauxite. The project’s development will include building infrastructure like roads and rail connections. This is to transport the ore to export ports. Initially, the mine is expected to produce 4.9 million tonnes of bauxite. It will enhance the region’s economic landscape​ entirely. Construction for the project is said to begin in the latter half of 2024 depending on regulations and financing.

Mbalam-Nabeba Iron Ore Project:

The Road Ahead: Opportunities and Challenges

Despite its geological wealth, mining has never played a major role in Cameroon’s economic development. And much of this wealth remains unexplored. The development of the mining sector is slowed due to poor transportation and inadequate power. A $30 million World Bank project initiated in 2012 aims to improve the mining sector’s efficiency.

Financing and Infrastructure:

Developing large-scale mining projects requires major capital investment and proper infrastructure, including transportation networks and processing facilities. Financing and building the necessary infrastructure are critical steps toward discovering Cameroon’s mineral wealth​.

The development of Cameroon’s mining sector is affected by lack of transportation options. But, the progress of long-awaited rail projects is expected to improve the sector’s growth.

Environmental Sustainability:

In Cameroon, the mining sector faces several environmental challenges. These include land degradation, water and air pollution, deforestation, ecological disturbance, and the destruction of wildlife habitats. These negatively impact the sustainable development of the mining sector in the country. Implementing proper environmental standards and promoting sustainable mining practices will help protect Cameroon​​.

The conditions for small-scale miners should be improved. Businesses and government agencies should support these miners by creating a fair market and helping them own land and use better technology. They need to involve local communities and provide them with the information to make decisions.

There should be strict environmental policies, the creation of research centers, and agencies to oversee mining activities. This is to ensure they are environmentally responsible. There should be a thorough clean-up of mining sites and certifications to encourage companies to meet environmental standards. This can help make the mining industry in Cameroon more focused on sustainability and the well-being of its people. The government should develop the sector within a sound environmental framework.

The key players in the mining industry in Cameroon are:

• Eramet (rutile exploration in Akonolinga);
• Geovic Cameroon SA (exploration of nickel, cobalt, and manganese in Lomié, Togo);
• Cameroon and Korea Mining Incorporation (Mobilong diamond exploration);
• Cameroon Alumina Limited (exploration of bauxite deposits at Minim-Martap and Ngaoundal);
• Sinostell CAM (iron exploration);
• Cam Iron SA (Mbalam iron exploration);
• Caminex (iron exploration in Nkout); and
• C&K Mining (diamond exploration in Ketté, Boubara, Lom, Boumbe 2, Betare Oya, Yokadouma and Gari Gombo)

Conclusion

Cameroon’s rich mineral deposits promise the country’s economic future. These resources need to be leveraged. Cameroon can pave the way for sustainable development. This leads to creating jobs, boosting exports, and fostering economic growth.

The lack of infrastructure, a challenging business environment, and corruption are major hindrances. The government is addressing these issues by constructing roads, ports, and power projects. The country needs to improve various aspects of its business environment to attract foreign investment.

Despite these challenges, there is potential for growth. Cameroon can become a significant player in the global mining industry in the future.