Identifier
Created
Classification
Origin
08YAOUNDE43
2008-01-15 16:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Yaounde
Cable title:  

CAMEROON: MINISTER OF MINES PROVIDES OVERVIEW OF

Tags:  CM ECON EIND EMIN 
pdf how-to read a cable
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RR RUEHWEB

DE RUEHYD #0043/01 0151618
ZNR UUUUU ZZH
R 151618Z JAN 08
FM AMEMBASSY YAOUNDE
TO RUEHC/SECSTATE WASHDC 8480
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS YAOUNDE 000043 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: CM ECON EIND EMIN
SUBJECT: CAMEROON: MINISTER OF MINES PROVIDES OVERVIEW OF
SECTOR

REF: 07 YAOUNDE 1428

UNCLAS YAOUNDE 000043

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: CM ECON EIND EMIN
SUBJECT: CAMEROON: MINISTER OF MINES PROVIDES OVERVIEW OF
SECTOR

REF: 07 YAOUNDE 1428


1. (SBU) Summary: On January 9, Ambassador paid a courtesy
call on Badel Ndanga Ndinga, Minister of Industry, Mines and
Technological Development, and his mining team. They noted
Cameroon's large (though largely untapped) mining potential,
including its active artisinal mining sector. The U.S.
company Geovic is close to starting cobalt mining, while U.S.
firm Hydromine has to demonstrate that its strategic partners
are lined up, according to the Minister. He noted the low
level of industrial development, asking for assistance in
developing industrial norms and promoting mining
opportunities. End summary.

Mining Prospects
--------------


2. (U) Ndanga Ndinga highlighted Cameroon's substantial
mining potential, saying the GRC had issued 50-60 permits to
research the potential for mining bauxite, gold, iron,
nickel, uranium, cobalt and other minerals, covering 40
percent of the country's territory. According to the
Ministry's estimates, the six largest projects have a value
of more than $107 billion and promise to return more than $2
billion annually to the government treasury (more than double
the returns from petroleum) when fully realized. However,
only ten permits are active, with no industrial mining yet
happening. The Minister and his Secretary General hoped the
U.S. could help Cameroon better understand its mineral
potential, including developing a mineral plan and better
data.

U.S. Investments
--------------


3. (SBU) The Minister hoped the U.S. company Geovic would
start mining cobalt by the end of 2008. His staff noted past
problems in defining the scope of the permit, in defining
ownership, and in completing the feasibility and
environmental studies, but all of these issues have
reportedly been sorted out. The Ministry is also hoping to
get reassurances from U.S. company Hydromine that its
partners, Hidalco and Dubal, are still prepared to make a
strategic financial investment in the project. The Secretary
of State of the Ministry subsequently told Poloff that
Anglo-Australian mining company Rio Tinto has already applied
to take over this bauxite mining concession if Hydromine
cannot bring its partners to the table before its exploration
license expires in March. (We have urged Hydromine to respond
quickly to the Ministry's requests.)

Artisinal Mining
--------------


4. (U) Cameroon hosts significant artisinal mining,
including the mining of 300 kilos of gold per month. The
Minister wants to mechanize and more formally integrate these
small mines. He noted one South Korean investment in small
gold mining and hoped U.S. companies could enter this sector
as well. He saw potential in increasing diamond mining
(Cameroon has some mines in the East) and noted that the GRC
adheres to Kimberly process requirements.

Industrial Development
--------------


5. (U) Minister Ndanga Ndinga conceded there is very little
industry in the country (less than 3 percent of GDP),largely
limited to agribusiness, pharmaceutical production, the
energy sector and artisanal mining. He added that the GRC
has started a mining school for engineers and other technical
staff, and is working to strengthen the capacity of small
scale industrial producers. Ndanga Ndinga also highlighted
the need to develop more norms to boost industry's
competitiveness. He hoped the U.S. could help develop norms
and standards as well as encourage investment in the
industrial as well as the artisinal mining sectors.

Comment
--------------


6. (SBU) Despite Cameroon's tremendous mineral reserves,
reportedly including some of the world's largest reserves of
bauxite and cobalt, none of it has been mined on an
industrial scale. The country's large aluminum plant (owned
by Rio Tinto but known as ALUCAM, the French-Cameroonian
parastatal that established it) sources all its bauxite from
Guinea. One of the new ministers who came in with the
September 7 Cabinet reshuffle, Ndanga Ndinga is well regarded
and, while he has no mining expertise, he has an experienced

senior team looking increasingly seriously at developing the
sector. 2008 could be an important year for mining in
Cameroon, with U.S. company Geovic hopefully leading the way;
as reported reftel, the Hydromine story is more complex and
tenuous. The minister was much less versed on his industrial
portfolio, which in part reflects the fact that there is so
little industry to promote, but also probably speaks to the
at times confusing overlap between his ministry and the
mandates of other ministries dealing with economic issues.
GARVEY