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Cameroon: The New Destination for Mining


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Cameroon: The New Destination for Mining …

Cameroon: The New Destination for Mining
Hosted by Hon Dr Calixtus Fuh, Secretary of State , Ministry of
Mines, Industry and Technological Development, Cameroon

Mining On Top: Africa - London Summit
25-26 Jun 2013 | London

Published in: Business, Technology

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  • 2. Lies midway between West and Central Africa; Stretches from the Gulf of Guinea in the South- West to Lake Chad in the North; Lies between 2° - 13° of latitude North and 08° - 16° of longitude East; Bounded to the: South-West and West by the Gulf of Guinea (the Atlantic Ocean) and the Federal Republic of Nigeria respectively; North by Lake Chad;  North-East and East by the Republics of Chad and Central Africa respectively; South by the Republics of Congo, Gabon and Equatorial Guinea; Population: January 2010 estimation gives 19.4 million inhabitants. LOCATIONLOCATION
  • 6. LIMBE
  • 10. DOUALA
  • 11. YAOUNDE
  • 12. Map of major projects under development
  • 13. Insfrastructure Policy Cameroon government intends to develop a regional policy of infrastructure (iron ore province of CMR-GAB- RC transport
  • 14. Infrastructure(ctd) • Hydroelectric dams of Edea, Song-Loulou, Lagdo for a total of 1200 MW; • Nyassa in Douala thermic central of gas has been launched for energy capacity enhancing; • Construction of Lom-Panger and Memvele started in 2011; • Mekin and Menchum hydroelectric dams starts 2014; • Kribi gas thermal plant (150 MW) will be operational 2013; • 5000 km of asphalted roads, 45000 km of maintained laterite roads; • Three International ( Douala, Yaounde-Nsimalen & Garoua), and three national airports;
  • 15. Infrastructure (ctd) • Railway linking Douala – Yaounde – Ngaoundere & western railway (1009 km); • Kribi deep sea port under construction since 2010; • Limbe deep sea port preliminary studies have started; • Opportunities for BOT negotiations with the government on rail reoptimization/built; • Work on the Yaounde-Douala high-way ongoing.
  • 16. Simple approach to mineral title Mineral Permits Reconnaissance Exploration Exploitation (Mining)
  • 17. Licence overview Permit Quarry Reconnaissance Exploration Exploitation Purpose Open pit various materials Geological and geophysical surface work All types of work for the definition of mineral deposits Mine development including facilities Property As necessary According to administrative boundaries Polygon, no limitation in depth Rectangle as per exploitation permit Area Defined in act issuing permit 10,0000 km2 500 km2 500 km2 Validity 5 years, renewable indefinitely for periods of 3 years Fee per m2 1 year, Renewable Flat fee 3 years Renewable twice for two years each Fee per km2 25 years renewable for 10 year periods until exhaustion of resources Fee per km2 Issuing Authority Minister in charge of Mines Minister in charge of Mines after VISA of presidency Minister in charge of Mines after VISA of presidency President of the Republic Notes Exclusive rights, must have a sizeable deposit, EIE required Gives priority for exploration permit Exclusive rights, gives priority for exploitation permit Exclusive rights, must have proven deposit, EIE required, mining convention negotiated prior to issue of permit
  • 18. Duration for processing of applicationsDuration for processing of applications • Applications for grant of reconnaissance licence and mining titles shall be processed within the following time-frames: reconnaissance or prospecting licence: within 30 (thirty) days of registration of the application; exploration permit: within 45 (forty-five) days of registration of the application; mining permit: within 90 (ninety) days of registration of the application. • Where the application for mining title is not processed within the time- frame prescribed above, the title shall be considered as granted, unless the service in charge of mines duly informs the applicant, of the extension of the time-limit for examining the application. Such time-limit may not be longer than the initial time-frame. • Where an application for renewal of a mining title is not processed before the expiry date, such title shall continue to be in force for the land for which the renewal is requested until notification of the renewal or rejection.
  • 19. Cameroon's geological history begins with the Archaean era between 3.5 and 2.5 billion years (Ga) ago; Its different phases of development are illustrated by geological masses formed during successive orogenic cycles characterized by the formation of mountain ranges, and subsequent extension phases by the splitting of the continental crust. GEOLOGYGEOLOGY
  • 20. Cameroon is generally acknowledged to have experienced three orogenic cycles: 1. The Liberian cycle, exemplified by the Ntem complex, which dates from the Archaean era, and is about 2.5 billion years old 2. The Eburnean or Transamazonian cycle, with the Nyong and Ayna, formations, which date from the Palaeoproterozoic period (2.5-1.8 billion years ago); 3. The Pan-African cycle, which comprises formations from the Neoproterozoic era 1,000-600 million years (Ma) ago. GEOLOGY (ctd)GEOLOGY (ctd)
  • 21. Geology & Mineral potentialGeology & Mineral potential This geology is favorable to the mineralization of substances as precious metals (gold, diamonds) base metal, rare metals etc, and hydrocarbons. So that we can have for example in the:  Congo Craton - Archaean Greenstone belts (South): iron ore (Mbalam, Kribi), uranium (Lolodorf), Diamond (Mobilong)  Central Cameroun shear - Poli series (North): uranium, saphire, gold,  Sanaga shear zone - Lom series (East): gold  Pan African Mobile Belt: (Placer gold)  Sedimentary basins: oil & gaz (Douala, Campo, Kribi) salt, sapphire (Mamfé).
  • 22. SUMARY OF THE EXPLORATION ISSUES From 1960 to1990, some of these indices discovered through the exploration carried out since the beginning of the last century, were investigated with the bilateral cooperation agreements between Cameroon and international bodies like BRGM, UNDP, BGR and others. This resulted in the iron in Mbalam & Kribi, bauxite in Ngaoundal and Minim Martap and Fongo Tongo, Nickel-Cobalt in Lomie, titanium in Akonolinga, Tin in Mayo Darle, Uranium in Poli & Lolodorf, Gold in the East region, Diamond in the south east region. These projects form the current axis of the mineral exploration & exploitation activities in Cameroon. Actually :  87 research permits have been granted to some companies; one mining permit in Ni-Co and 3 for limestone and marble have been issued. The present review has focused its attention to some basic metal and precious substances projects which are going on in Cameroon territory.
  • 23. Some major projects under development DIAMOND GOLD NUGET ROUGH SAPPHIRE WASHED Ni- Co Due to this favourable environment for mineralization some principal project are under developpment and intensive exploration. They are:  Ni-Co in Lomié area: exploitation permit (GEOCAM);  Bauxite in Minim-Martap and Ngaoundal, tworesearch permits (Cameroon Alumina Ltd, derived from Hindalco-Dubal-Hydromine;  Iron ore in Mbalam (CAM IRON SA/SUNDANCE RESOURCES Ltd)  Iron in Kribi (SINOSTEELCAM)  Diamond in Yokadouma ( C&K Mining);  Gold in Batouri (African Aura Resources) & Uranium in Poli and Lolodorf, Gouna ,Salaki, and Voko.(Mega Uranium Cameroon).
  • 24. Ni-Co in Nkamouna achievements (1) October 16, 2009:(1) October 16, 2009: Increase inIncrease in resources at the Nkamouna Cobaltresources at the Nkamouna Cobalt ProjectProject  Measured and indicated resources increasedMeasured and indicated resources increased 97% to 120.6million tonnes .97% to 120.6million tonnes .  Inferred resources increased 25% toInferred resources increased 25% to 202.5 million tonnes.202.5 million tonnes. (2) December 9, 2009:(2) December 9, 2009: LycopodiumLycopodium appointed to update feasibilityappointed to update feasibility studies; deliverable date Q2 2010.studies; deliverable date Q2 2010. (3)(3) December 16, 2009:December 16, 2009: StandardStandard Chartered Bank engaged by GeovicChartered Bank engaged by Geovic Mining Corp as financial advisor toMining Corp as financial advisor to the Nkamouna Cobalt Project.the Nkamouna Cobalt Project.
  • 25. Ni-Co (ctd): Resources & reserves Mine Permit: 1,250 km2 Nkamouna Proven & Probable Reserves: 54 million tonnes 0.25% cobalt, 0.69% nickel and 1.33% manganese within a mineralized area of 13 km2 Physical Concentration of this ore yields 12 million tonnes with upgrades to O.72% Co, 0.90 % Ni and 3.71 % Mn Mada Inferred Resources: 145 million tonnes 0.21% Co, 0.48% Ni and 1.15% Mn within a mineralized area of 60 km2 Five other deposits contain 264 km2 of mineralized area
  • 26. Ni-Co Updated resources & reserves • Measured and Indicated resources increased 97% to 120.6 million tonnes, grading 0.23% cobalt, 0.65% nickel, and 1.34% manganese. • Inferred resources increased 25% to 202.5 million tonnes, grading 0.20% cobalt, 0.59% nickel, and 1.20% manganese. • The January 2008 estimate of Nkamouna's Proven and Probable reserves, at 54.7 million tonnes grading 0.25% cobalt, 0.69% nickel, and 1.33% manganese, was projected to support a 19-year mine life. The approximate doubling in Measured and Indicated resources suggests the potential to double this period.
  • 27. Ni-Co (ctd): Some favorable caracteristics Cameroon cobalt mineralization is higher grade and coarser size than all other known laterite deposits; Cobalt is upgraded nearly three-fold using low-cost washing and sizing similar to simple sand and gravel operations ; Shallow open pits only 16 meters deep enable low mining costs, concurrent backfill and reclamation; blasting not needed Recent test work indicates opportunity to utilize simpler leach chemistry and processing equipment
  • 28. Iron ore of Mbalam : Resources & reserves Deposit Resource category Tonna ge (Mt) Grade (%) Fe SiO2 Al2O3 P LOI Mbarga Indicated 168.7 60. 5 9.5 2.1 0.08 1.4 Mbarga Inferred 10.4 57. 5 13.0 2.7 0.06 1.6 Mbarga south Inferred 21.8 58. 8 9.4 3.0 0.06 2.9 Metzime vin Inferred 14.2 61. 8 10.3 3.6 0.09 1.8 Total-indicated & inferred resource 215.1 60. 2 9.8 2.3 0.08 1.6
  • 29. Iron ore of Mbalam (ctd) : Resources & reserves Deposit Resourc e category Tonna ge (Mt) Grade (%) Fe SiO2 Al2O 3 P LOI Mbarga Indicate d 168.7 60. 5 9.5 2.1 0.0 8 1.4 Mbarga Inferred 10.4 57. 5 13.0 2.7 0.0 6 1.6 Total-indicated & inferred resource 215.1 60. 2 9.8 2.3 0.0 8 1.6
  • 30. Mbalam Iron Ore: Recents achievements • The indicated resource of itabirite hematite is sufficient to provide beneficiation feed required for the proposed production of high quality Direct Reduction grade and blast furnace grade iron concentrate during the first 20 years of project operation. • To enhance the high grade hematite, another RP (N°143) has been granted to CAM IRON SA/ SUNDANCES RESOURCES Ltd for further exploration activities.
  • 31. Mbalam Iron Ore: Recent achievements (ctd) • 20,000 metres budgeted in 2009/10; • 3 new drill rigs purchased; • Transport and port scope defined –site investigations commenced; • Framework Agreement signed with Government; • Feasibility Study under review for Mining convention negotiations • Environmental and Social Assessment report under Government review; • Full funded Definitive Feasibility Study to be completed in 2010 -$90m capital raising; • Deutsche Bank appointed as strategic partners and arrange project financing.
  • 32. Yokadouma Diamond: Resources & Reserves The conglomerates are the source rocks
  • 33. Yokadouma Diamond: Resources & Reserves (ctd) ZONES DIMENSIONS OF THE CONGLOMERAT E OUTCROPS (m²). TOTAL SURFACE AREA OF THE BLOCKS CONCERN (m²). MOBILONG >/=150.000 >/=11.934 LIMOKOALI/MOMIKO GUI and MOMETCHOBI >/=483.249 >/=10. 62 TOTOBI >/=1.75 >/=9. 888 NONPEDA/MPMALOU DOU and LINGUI >/=3. 564 >/=13. 469 TOTAL SURFACE AREA >/=9. 296 >/= 45. 911
  • 34. Yokadouma Diamond(ctd): Open pit mining • Open pit mines are used when deposits of minerals are found near the surface or along kimberlite pipes. This method is used when the "overburden," or surface material covering the deposit, is relatively thin and/or the minerals are imbedded in structurally unstable earth. • In open cut mining, the ore shall be removed from deposits that crop out at the surface, lie on a hillside, or are covered by a shallow overburden that is stripped before or simultaneously with the removal of the ore.
  • 35. Yokadouma Diamond (ctd):Environmental issues • The first step in developing exploitation is the removal of vegetative cover of trees and underbrush. Next, the overburden of topsoil and subsoil is removed and stockpiled for future reclamation. The ore is exploited in the preferred method to be applied. • Considering the fact that the zone is located in a tropical dense forest area, a detail environmental study is planed to be carried out in the different target zones which include, Mobilong, Limokoali/Momikogui, Momitchobi, Totobi and Nonpeda areas. This shall be done following a well defined reference terms based on socio-economic, flora and fauna that is found in this zone.
  • 36. Bauxite : Resources & Resrves Exploration campaign was conducted between January 16th and May 25th 2009. 11 plateaus on Minim-Martap and 3 plateaus on Ngaoundal were drilled, and 11,358 samples were collected, prepared, and analyzed. Estimated Bauxite resources are around 550 Mt with potential for additional 100-200 Mt in the southern region of Minim-Martap deposit.
  • 37. Bauxite(ctd) : Environmental Issues • Total population in the project area is around 45,000, but none of them is living on the potential mining pits. • The base line study covered the Exploration Permits area and a buffer zone of 10 km around their perimeters. It basically showed that the area is fully suitable for implementing mining operations, with no endangered or protected flora and fauna specie, nor any migratory path within. Air, water, and noise monitoring followed the same pattern.
  • 38. Bauxite (ctd): Alumina refinery Alumina refinery, planned to be established near the bauxite deposits, will have the capacity of 3 Mtpa of smelter grade alumina (SGA). It will be built in two phases. Proven and robust technologies have been chosen in the process design, which is based on a typical low temperature digestion, given the gibbsitic nature of the bauxite. Process and operating parameters will be in the first quartile of the industry. The plant will be operated to adhere to the best safety, environment, and efficiency standards in the industry.
  • 39. Bauxite(ctd): Recents achievements • The port facilities :Government of Cameroon intends to develop at Lolabe, about 860 kilometers by rail from the preferred refinery site. • The total yearly cargo to be transported by rail will amount 6.4 Mtpa, when the refinery is fully developed. • The existing railway line between Macor and Makondo has to be upgraded to support such additional quantities, and a new line of around 140 km is to be by Government and/or third parties.
  • 40. Uranium of Poli: Resources Reserves • Detailed mapping, ground radiometrics, trenching and sampling of the Salaki radiometric anomaly in the Salaki concession, 22 kilometres WSW of Kitongo. The work delineated a 500 metre long zone of elevated radiometric values of 100-12000cps in microdiorite, brecciated basic volcanics and volcaniclastic sediments along a major NW-trending fracture. Ten representative grab samples of the various lithologies in the prospect assayed in the range 324- 8293ppm U3O8.
  • 41. Uranium (ctd): Teubang • Mega conducted a detailed helicopter-borne magnetic- radiometric survey over the area, comprising 8900 line kilometres at a line spacing of 150 metres and flying height of 30 metres. The survey highlighted numerous radiometric anomalies and other areas of interest and ground follow up is planned to began in may 2010. Distribution of the anomalies on the Teubang research permit
  • 42. Uranium (ctd): Lolodorf • A detailed7350linekilometrehelicopter-bornemagnetic- radiometricsurveyovertheentireLolodorfpropertyat150 metreslinespacingandflyingheightof30metres.Themore prominentradiometricanomaliesdetectedinthesurveyhave beenfollowedupbygroundradiometricsurveys,trenchingand geochemicalsampling.Severaldrillingtargetshavebeen identified,butdrillinghasbeendeferredduetobudget constraints. Trenching to expose uranium mineralization in a prospect
  • 43. Gold of Batouri: resources & reserves (ctd) • 3.5km envelope of >250ppb Au in soils (2) • Granite hosted quartz vein and stockwork deposit (4) • Extensive artisinal pitting on coarse-gold bearing veins (4) – >8,900m of diamond drilling completed, high grade results: 1m @ 132g/t (3) – 6.8m @ 8.86g/t (5) , 1.5m @ 49g/t (3) , 1.5m @ 43g/t (2) & 2.67m @ 66g/t (2)
  • 44. Business Opportunities in the Sector • Participation in a new mining inventory; • Priority in the research permits attribution to companies which have participated to the new mining inventory; • Negotiations of JVs with the juniors holding research permits are encouraged by the government trough the mining law.