Cameroon’s sonamines tightens grip on gold mining sector

The National Mining Company, Sonamines, is significantly increasing its scrutiny of gold mining operators across Cameroon. Following a comprehensive inspection tour through the Adamaoua and East regions, key hubs for artisanal and semi-mechanized gold output, Director General Serge Hervé Boyogueno presented a stark assessment. He highlighted that numerous operators fail to meet projected production benchmarks, some demonstrate outright insolvency, and persistent environmental breaches coupled with opaque commercial networks undermine the state’s authority over the vital gold sector.

Field inspections reveal vulnerabilities in the gold industry

The regions visited concentrate the majority of Cameroon’s gold extraction activities, which are largely dominated by semi-mechanized companies and a multitude of artisanal miners. The mission, initiated by Sonamines, aimed to verify that permit holders were complying with their contractual and regulatory obligations. The findings, as outlined by its Director General, underscore a persistent gap between the commitments made when titles were granted and the actual productivity observed at the sites.

A substantial number of operators are not achieving the production thresholds stipulated in their terms of reference. This underperformance is further compounded, for some, by proven insolvency towards the state and its various agencies. On this matter, the head of Sonamines explicitly defers the decision to the Ministry of Mines, as it is the sole authority empowered to suspend or revoke permits. The state-owned company thus positions itself as the technical body for observation, entrusting the political oversight with the responsibility for imposing sanctions.

Insolvency, environmental issues, and commercial opacity: a multifaceted challenge

Beyond strictly financial matters, the mission documented alarming environmental deficiencies. The restoration of exploited sites, the management of wastewater laden with mercury or cyanide, and the securing of extraction zones all represent significant ongoing challenges. These failures expose local communities to major health risks and jeopardize the sustainability of an activity that holds increasing weight in the regional economies of the East and Adamaoua.

Another critical area concerns commercialization. A significant portion of the extracted gold bypasses official channels, fueling regional smuggling networks. This practice deprives the Public Treasury of essential revenue and prevents the traceability of the precious metal. Such opacity, a long-standing concern for specialized organizations, contradicts Yaoundé’s declared objective of mineral sovereignty. Sonamines now intends to tighten its net by reinforcing reporting obligations and expanding approved collection points.

Towards a national strategic gold reserve

The most transformative ambition championed by the general management is the establishment of a national strategic gold reserve. This objective, mirroring practices observed in several African central banks, aims to provide Cameroon with a metallic reserve capable of backing a portion of its monetary policy and serving as a buffer against external shocks. This approach aligns with that of other producing nations in the sub-region, eager to capture greater value from their own resources.

However, the success of this strategy hinges on Sonamines’ ability to channel a substantial fraction of national production towards its official counters. This will necessitate a prior cleanup of the existing operator landscape, offering competitive purchase prices compared to informal buyers, and fostering close coordination with security forces and customs along border corridors. Crucially, the decisions anticipated from the Ministry of Mines regarding the fate of defaulting operators will be instrumental in this endeavor.

The implementation phase of Cameroon’s mining reform promises to be intricate. It balances the imperative of contractual discipline, the preservation of a sector that provides informal employment, and the aspiration to integrate gold into a framework of financial sovereignty. While the precise timeline for ministerial decisions remains undisclosed, the findings from the Sonamines mission are expected to inform upcoming directives. The Director General plans to extend these controls to other production basins.