African Critical Mineral Race: Cameroon Eyes Mining to Boost Post-Oil Economic Growth
Mining accounts for only 1% of GDP but is poised to surpass oil as a key growth driver
Projects such as the Mbe Gold Mine, the Mbalam Iron Ore Mine (controlled by Chinese enterprises), and the Minim Martap Bauxite Mine are progressing
The new Mining Law and governance challenges shape the evolving landscape of the industry
Cameroon is positioning its emerging mining sector as a pillar of future economic growth, aiming to reduce reliance on declining oil revenues. Although mining currently accounts for around 1% of GDP, it is rapidly expanding through large-scale gold, iron ore, and bauxite projects.
On May 19, London-based Oriole Resources announced positive results from drilling at its Mbe Gold Mine project. The company plans to provide a resource estimate by the end of 2025. The Mbe project complements Oriole's more advanced Bibemi project, which is expected to hold 460,000 ounces of gold with an average grade of 2.06 grams per ton.
According to data from the Extractive Industries Transparency Initiative (EITI), hydrocarbons remain the dominant sector in Cameroon's extractive industries, contributing 4% to the country's GDP in 2021 and accounting for 31% of exports. However, as oil production declines, Mining Minister Fuh Calistus Gentry predicts that 15 mining projects will be launched by 2027.
One of the most advanced projects is the Mbalam Iron Ore Mine, which is expected to produce 10 million metric tons annually during the first phase of operations and begin exports by the end of the second quarter of 2025. The Kribi-Lobé mine, currently in the pilot stage, aims to produce 4 million metric tons of concentrate annually. G-Stones Resources plans to start exporting its Grand Zambi project in June 2025, with an annual output of 2 million metric tons.
In the meantime, the Minim Martap Bauxite Mine project operated by Canyon Resources remains in the pre-construction phase. It is expected to produce 6.4 million metric tons of bauxite over 20 years and plans to commence its first exports in 2026.
Cameroon is also beginning to shape its domestic gold industry. Codias SA operates the country's only underground gold mine, with an annual production capacity of up to 500 kilograms.
Despite strong momentum, Cameroon's mining potential remains underexplored. Official data lists more than 50 proven mineral resources, but their value realization depends on the country's ability to maintain a stable and attractive investment environment.
In 2023, the government issued a new Mining Law to address the limitations of the 2016 framework and boost investor confidence. However, the governance of the industry remains under close scrutiny. Australian company Sundance Resources has initiated arbitration proceedings with the International Chamber of Commerce in Paris seeking $5.5 billion in compensation due to the revocation of its Mbalam mining license.
Meanwhile, Cameroon was suspended from participating in the Extractive Industries Transparency Initiative (EITI) in 2024, as the organization pointed out low civil society participation and broader governance issues.
Source: ecofinagency
Original article: https://www.toutiao.com/article/1832760904290506/
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