We are multiplying efforts to put order in the mining sector-Prof Fuh Calistus Gentry, Interim minister of mines.

Interim Minister of Mines, Prof Fuh Calistus speaking to the press after attending opening of November Session of parliament

Following the opening of the November Session of Parliament, on Friday November 10, 2023, the Interim Minister of Mines, Industry and Technological Development, Professor Fuh Calistus Gentry, made a press outing.

The interview focused on the rallying call of the Right Honourable Cavaye Yeguie Djibril for stakeholders to collectively work towards the effective take of mining projects under the New Deal. 
In his declaration to the press, the interim Minister revisited the level of readiness by the mining companies in charge ahead of the effective start.

He also highlights some hurdles faced and efforts taken to restore order in the sector and imbibing new impetus to the current mining revival in Cameroon.

 

In his speech, the Speaker of the National Assembly spoke about mineral exploitation in Cameroon under the New Deal. What does this concretely consist of?

We are transiting from being a country of potential. Potential doesn’t create jobs or pay taxes. The President of the Republic announced in 2022 that we are going to move into production. He announced three projects that were to start, which I can give details of their state of advancement. 

As I speak to you, the Kribi-Lolabe Iron ore project by the company SINOSTEEL, is fully in action. In fact, we will be going to the ground on Monday (today). SINOSTEEL has mobilised almost 80% of the complementary equipment which is going to come over. As we speak, field work is going on to prepare the groundwork. In a month or so, we will be having the equipment, which will come while the ground is prepared.  

There is also a mission from my ministry going to China and Brazil to see effectively that these equipment are of standard and measure to the norms of mining. 

We also have the Grand Zambi Project which is neighbouring to that. Already, we have a crusher which is doing infrastructure. The company has taken upon itself to do a-7km of road. Besides that, they have already started executing the open pit mine but they have a crusher which is used for infrastructure. There will also be the crusher which will be used for the ore. 

Already, they have put in place equipment which will be used for processing the ore. In that respect, we can tell you that anybody going to Grand Zambi, going to Campo, will see the company in full activity. The road linking Campo to the port, is also under construction already, though there are some issues between the port of Kribi and the site because of boundaries between the two entities. That is why we are going to Kribi on Monday to solve that. 

We also have the Mbalam Project and the Geovic Project. These projects have some issues which are linked to restructuring. As soon as these projects are restructured, they will join these other projects that I have stated. 

We have the Colomine Project, which effectively has started. We are going to inaugurate the gold treatment plant one of these days. We want to migrate this project to a closed system but already they're producing. 

We have five short term projects, which we can tell you as the Speaker of the National Assembly said, should start in 2024. We have effectively three projects that have started and are ongoing. 

 

The Speaker also mentioned divergences amongst stakeholders. May we know what the differences are and what are the possible solutions? 

 

The particular case we can cite is the GEOVIC project, where we have two shareholders who have a lot of misunderstandings. To the best of our knowledge, if these shareholders could come to a consensus, this will be the easiest amongst all the other project to start. 

The point is that the ministry of mines should be given its place as the technical ministry to put order and restructure, because it’s just small quarrel between the stakeholders that are holding back the project. We are so happy that today, the Speaker of the National Assembly has given us the clear way forward to make sure that all these small differences that are within this company can be sorted out. 

Other divergences are that sometimes we find out that our moves are not complemented by other administrations. For example, when we put in play the weigh bill, which are supposed to give a clarity on what we produce, we have contrary correspondence from other administrations which really frustrate us. 

Nevertheless, I must personally thank the Ministry of Lands for the special dispositions they took to cancel over 129 land titles, otherwise, the project of Campo by SINOSTEEL would have not stated. I want to thank the Minister of forestry which has taken all measures to say look, go ahead with the work with the work, we will regularise other things necessary. I think this is the type of collaboration we want from other administrations, especially as the Head of State has announced that these projects have to start. 

 

Mr Minister, when we talk about small scale mining, we think about the activities carried out by local people. In the current context of renewal, how can we ensure that these local operators are supervised and what real contribution could they make to state revenue? 

 

This is a very important sector if it is well managed. I quote the example of Brazil because it is a very big producer of gold in the world. 70% of this gold comes from the informal sector. If the sector is organised, it plays a very big role. What we have done as temporary measures, is that we try to do activities with a human heart. We have made it clear that every project which is done at a mechanised level has to restore the environment while they are working. 

In addition to that, they also have to identify a social project which they have to do for the people in the area to benefit from. In this respect, we are seeing a change. Recently, my Secretary General was in the East Region. We have identified, through his visit, almost 1.5 billion projects which will be available to local populations while the environment is being restored. 

Also, we did implicate the mayors, which is very much in line with decentralisation. We have a representative of the Ministry of Mines in every municipality who walks with the mayor so that when authorisation comes, it’s not a secret. The mayor should be informed. Right now, mayors have made an inventory of all mining activities in their communities and they will follow it up. They are better placed to defend the interests of their people. 

Finally, we're going to move this sector from this haphazard thing you see, into a more organised system. That's why a mission from my ministry is going to Brazil and they will work in closed systems because the gold we are recovering now is only 30 to 40%. When these systems will be put in place, it will increase the recovery rate to 85%. That will make the State to start feeling the impact of this sector which many people think that is just nothing. We are organising it to become a major player in the economy of the State. 

 

In other countries, we have seen sometimes massive erosion of the riches of the subsoil. What safeguards are there for Cameroon? 

This very house where we're standing in has passed very, very good laws to protect the interests of Cameroonians. I dare say that in other countries, mining has become a curse rather than a blessing to the people. I can assure you that will never be the case for Cameroon. We have very strong clauses. For example, the national mining companies, SONAMIN, represents the State with 10% free carry in every project, but they can add 25% if they desire where they feel that the State will participate. This could happen if we see that it is a strategic project for the State. 

In another sense, what is happening now, the State takes 25% of all the gold mined in the semi-mechanised sector. That is why you saw us giving gold to the Minister of Finance the other day. We have since this process started, given 800 kilogrammes of gold to government. 

These are all things that show that we have opened the sector but we have clauses which are protecting the nation, and we have the tax or royalties which are paid to the population where these activities take place. These royalties are shared with different ministries which are involved. The mining law is aimed at protecting the interests of Cameroonians and making sure that even in some areas, very important projects are designed for the community. 

 

There was a time when pozzollan, a product used in cement production, abundant in certain parts of Cameroon, was being exploited in an uncontrolled way. Has this phenomenon been eradicated?

Cameroon is a very liberal country. We are very open to everybody. But while we are open, we must take measures to safeguard and see that those who come to do business with us are doing; that is, if what they are doing is within the framework of the law. Pozzollan is a very rare product. We are beneficiaries of this wonderful product because of the Cameroon volcanic line which stretches from Annobon (Equatorial Guinea) through the South West Region and through the North West Region up to the Adamawa Region. This is what is used together with pozzollan to make cement. It is a very valuable product. It will surprise you that despite the good faith, many companies took advantage and never paid their taxes, which is nothing much; just 300 FCFA per cubic metre. 

When we went down to the field, we made sure that we put order. There were some companies that wanted to even carry our pozzollan to send to other countries to produce cement. But we objected. There are other cement factories here and this remains very rare product which Cameroon has to safeguard and preserve with the greatest integrity. 

Based on this, we have restructured the sector. Right now, all operators who are operating illegally cannot more be allowed because we have opened up the sector for small scale people to have an authorised state document before they operate. Companies have been compelled to pay the necessary taxes. As you can see, just this year alone, what we were asked to collect as taxes have been multiplied by several factors because of these measures. 

 

Thank you very much Mr Minister

 

You welcome 

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