Cameroon Intensifies Gold Mining Scrutiny Amidst $3.5 Billion Revenue Leakage Probe
The Cameroonian government has initiated a significant crackdown on its gold mining sector, driven by revelations of substantial revenue leakages stemming from underreported production and illicit exports. Authorities are targeting discrepancies between declared output and actual extraction, a practice that has reportedly cost the nation billions in lost tax revenue.
Official estimates suggest that the illegal export of gold, particularly to the United Arab Emirates, has deprived Cameroon of approximately 2 trillion CFA francs (equivalent to about $3.5 billion) in tax revenue over the last five years. Fuh Calistus Gentry, the Acting Minister of Mines, clarified that the government’s primary concern is not the pilfering of state-owned gold, but rather the alleged under-declaration of production by private mining operators. This practice, he stated, has demonstrably diminished government earnings from a crucial mineral resource.
In response, the government is implementing a multi-pronged strategy to bolster oversight across the mining industry. This includes more rigorous inspections at mining sites, the establishment of minimum gold delivery quotas, enhanced monitoring of ore extraction and recovery processes, and the deployment of improved systems for tracing gold production from its source to the market.
The crackdown also extends to widespread licensing violations. Minister Gentry disclosed that over 200 companies are currently operating without the requisite authorisation, with 137 cases already referred for legal action. Furthermore, the government is addressing the misuse of exploration licences, where companies are allegedly conducting full-scale mining operations under the guise of exploration activities. Exploration permits, the minister emphasised, are strictly for identifying and evaluating mineral deposits and are not to be used for commercial extraction.
These measures align with Cameroon’s broader economic diversification strategy, which increasingly relies on its rich mineral resources, including gold, iron ore, diamonds, and cobalt. The nation’s adoption of a new mining code in 2023 aimed to strengthen sector regulation, attract investment, and maximise government revenue from mineral exploitation. The current intensified scrutiny signals a commitment to ensuring that these objectives are met and that the fiscal benefits of the mining sector are fully realised.
