Cameroon’s new mining code: regulation and permitting

As well as providing for new financing arrangements and enhanced rights of the state, the new code changes the regulatory picture and provides for the protection of local artisanal miners through the establishment of different classifications of rights, licenses, and permits.

Regulatory bodies under the new code

The new mining code has introduced a more comprehensive approach to the roles of various regulatory bodies. This includes the Ministry of Mines, Industry and Technological Development, which is now more involved in the overall development of the mining industry.

The Ministry of Nature, Environment, Protection and Sustainable Development has been given the responsibility of overseeing the restoration, rehabilitation, and closure of mines and quarries. This is to ensure that mining activities are in line with sustainable development goals.

The Ministry of Labour and Safety is now responsible for improving the hygiene, safety, and working conditions of miners in Cameroon in a move designed to ensure the welfare of the workers in the mining industry.

In addition, the National Mining Company, SONAMINES, has been granted exclusive powers to purchase and market gold and diamonds nationwide. This centralisation of power is indicative of a more streamlined approach to managing the mining sector.

Classification of rights, licences and permits

Six different mining titles have been introduced under the new mining code.

Artisanal and semi-mechanised artisanal mining licences

These will only be granted to natural persons of Cameroonian nationality, and the terms and conditions regarding the granting and renewal of these licences will be determined by regulation.

Reconnaissance permits

These will be granted to a mining company for the purpose of conducting surface surveys using geological and geophysical methods to discover traces and concentrations of useful minerals. There are size and shape limitations to when such permits can be issued – the surface area to be covered by these permits may not exceed 1,000km2 and are only permitted to be a single polygonal shaped block.

Exploration permits

These permits will be issued for the purposes of conducting of exploration works to locate and evaluate mineral deposits for determining the conditions for commercial mining. Their issue will be subject to the conclusion of a mining agreement between the state and the mining company requiring the permit.

Small-scale mining licences and industrial mining licences

Both licences may be granted to any holder of an exploration permit once they provide evidence of a mineral deposit within its perimeter. Where such licences are issued, it will cancel the existing exploration permit in that perimeter. If further exploration by a mining company is required, the state can issue an exploration permit extension instrument to that effect. Specifically for industrial mining licences, they are granted for an initial period of 20 years and can be extended for one or more periods not exceeding 10 years each.

Mining waste processing licence

These licences are issued for the purpose of mineral waste mining.

Priority to be given to Cameroon nationals and companies

The new mining code requires mining companies to give priority to the recruitment of Cameroon nationals with the required skills in all socio-professional categories and in all functions of the operations of the mining company. The code also states that 95% of all positions that do not require special skills should be reserved for Cameroon nationals.

Mining companies and their subcontractors are also required to give preference to companies governed by Cameroonian law for construction contracts and contracts to provide services, equipment, and materials related to mining operations. This process will be overseen by the minister in charge of mines.

Co-written by Christin Kleingeld and Keagile Madiba of Pinsent Masons.