VZCZCXYZ0021
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 
 
¶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