Cameroon Diamond Mining Industry - South Korea CK Mining develop Diamond Mine Yakadouma

Yaounde, Cameroon Africa(Cameroon News) – Gold Mining companies plan to set up contracts with the government of Cameroon.

Over thirteen gold mining companies together with stakeholders and administrative officials plan to get together on May 24 in Bertoua to set up the basic rules for the acceptance of a new contract. The contract is based on the yield and the value of gold mined from the region. The meeting that will be chaired by the Governor of the East Region, Lele L’afrique Tchoffo, is in accordance with the setting up of “Operation Gold” which is directed towards enhancing Cameroon’s gold reserves at the Bank of Central African States, BEAC with at least 70 per cent production.

According to Paul Ntep Gweth, Coordinator of the Small-scale Mining and Promotion Framework Unit, CAPAM, the place of the old contracts that are related to the principle of monthly flat rate payments will be taken by the principle of production and value sharing which promises more advantages for small-scale miners, technical and financial participants, mining companies, administrative and local stakeholders, as well as the government.

“From a transaction on 12 kilogrammes of smelted gold produced per month, for example, the new contract principle produces profits of FCFA 35 million instead of FCFA 3 million under the old contract principle,” he explained to Cameroon Tribune.

CAPAM officials also stated that the meeting will also focus of the requirement to put a tab on the illegal operations and move in a more focused manner towards the acceptance of advanced mechanisation of digging and processing in the gold reserves of Betare Oya area of East Region that will soon be dipped by the water to be set up by the building of the Lom Pangar hydroelectric dam.

The improvement in production of gold which is now sold at FCFA 22,000 per gramme is anticipated to improve the Cameroon’s gold reserves at BEAC and improve the country’s special drawing rights at the International Monetary Fund, IMF. It will also aid in getting together money to fund major development projects outlined under the Growth and Employment Strategy Paper, GESP.