Mining in Cameroon is governed by a special Mining Code. The Code establishes rules according to which in this African republic it is possible to extract minerals by companies in respect of state-owned land.
A mining exploration permit in Cameroon or a property right to mining can only be obtained after confirmation of the technical and financial capacity required for all operations related to such a permit. This right can be obtained only by legal entities operating in the mining sector.
The African state of Cameroon is a small country in western Central Africa. It is known as "Africa in miniature" for its diverse nature and population. These lands were once ravaged by slave traders, and despite the fact that a long time has passed since those dark times, Cameroon still remains one of the poorest nations in Africa. Despite the fact that Cameroon is a poor country, its bowels are rich in minerals, including gas and oil. Deposits of salts of volcanic origin, unique in their composition, have also been discovered here.License to collect minerals in Cameroon
The collection of minerals in the territory of Cameroon can be carried out only by individuals resident in the country. Note that such a nationality as the "Cameroonians" does not exist in nature - there are more than 250 different peoples who often do not understand each other if they speak their native ethnic language. The official languages in the country are English and French.
To start collecting minerals in Cameroon, you need to get a map of an individual non-industrial miner. Such a map can be issued as part of a mineral exploration permit.
A permit for the non-industrial extraction of precious and semi-precious substances in Cameroon can only be issued to companies in which at least 51% of the shares are owned by residents of the country. Permission for mineral exploration in Cameroon is issued only with the consent and approval of the country's highest authorities. Production tax is calculated at a rate of 25% of gross production at each non-industrial site.Obtaining a permit for mineral exploration in Cameroon
The exploration license is issued to legal entities for systematic and mobile ground surveys to detect traces or concentrations of minerals. The total area of the area on which the exploration permit is issued shall not exceed 1000 km2. The right to conduct reconnaissance cannot be transferred. The owner must carry out operations in accordance with a pre-designed and approved work schedule and submit periodic reports to the relevant regulatory authorities.
Permit for oil and gas production in Cameroon
The permit establishes the rights and obligations of the state and the licensee, in case of discovery of a hydrocarbon deposit, commercially suitable for operation, during the term of the relevant concession for operation. The Licensee assumes the financing of oil operations and produces hydrocarbons during the term of this contract, in accordance with the Concession Agreement.
The oil production permit applies to areas not covered by the oil contract and may be issued to a natural or legal person by a decision of the Minister, who establishes its conditions. The exploration permit gives its owner a non-exclusive right to conduct preliminary exploration within the specified area, such a permit is not the property right to produce hydrocarbons and is not subject to transfer of rights.
10% of the total share capital of a small mining company belongs to the state. The remaining shares are open to local and foreign investors.
The license for gas processing and storage, as well as for the production of liquefied natural gas in Cameroon, is granted for 25 years. Applications for a gas production license in Cameroon are submitted to the body responsible for the gas industry.
Tax and customs benefits are provided to holders of mining rights in Cameroon, depending on the phase of the mining project.
Permit holders are subject to royalties for the right to own the territory or the right to a state concession at the beginning of each financial year.
Cameroon mining royalties, including extractive taxes and mining taxes in Cameroon, are paid monthly when tax returns are filed with the tax authority.
Legal professionals at IQ Decision UK will provide comprehensive legal assistance if you intend to register a mining company in Cameroon.