Adopts Mining Code 2023 mandating State participation in various mining activities
19 Dec 2023
On 19 December 2023, Cameroon adopted a new mining code, Law No. 2023/014 of 19 December 2023. The new Code introduces several changes with implications for investment, including the following:
• It mandates the National Mining Corporation (SONAMINES) inter alia to acquire shares in companies engaged in various mining activities, ranging from exploration and exploitation to financial transactions. Also, it gives SONAMINES exclusive rights to purchase and market gold and diamonds in Cameroon.
• It mandates State participation in the share capital of companies that are involved in both small-scale and industrial mining. The State’s participation will be up to 10% of the total shares and the State will be entitled to these shares free of charge. Importantly, these shares will not be diluted should the share capital increase.
• It establishes conditions for sharing production between the State and the mining permit applicant.
The new Code also establishes three mining funds, namely (i) the Mining Sector Development Fund, which is aimed at financing inventory activities for detecting minerals and other mining and geological activities, (ii) the Mining Site and Quarry Restoration, Rehabilitation and Closure Fund, designed to finance the implementation of environmental conservation and rehabilitation programmes following mining activities, which are known for their significant environmental impacts, and (iii) the Special Local Capacity Building Account, primarily aimed at financing Cameroon’s economic, social, cultural, and technological development by developing local enterprises
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Primary (Mining and quarrying)
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Sources:
