The Ngoundal and Minim-Martap Bauxite mining project is likely not to go operational as early as initially planned.
The board members of the Cameroon Alumina Limited (CAL), a consortium of three companies, the Dubai Aluminium Company Ltd (DUBAL), India’s Hildaco Industries and United State’s Hydromine Inc, that would execute the project, left the Ministry of Industries, Mines and Technological Development after a working session with officials of that ministry without clear indications as to when exactly the project will kick start.
The first phase of the project initially earmarked for January this year could not start after government advised the consortium to revise its business plan to include the construction of social amenities such as water points, health centres and schools; and above all, a railway to link Ngaoundere to the seaside town of Kribi. The existing railway which of course, has withstood the test of time, according to experts, cannot withstand the pressure of transporting bauxite or/and alumina. Secondly, the railway does not link the project site to the port of export in Kribi.
The good news that came out of the meeting between board members of CAL and experts of the Ministry of Industries, Mines and Technological Development is the acceptance by the consortium to realise all these amenities. This is one of the major things contained in the new plan. Without being certain as to how much will be invested in the project estimated to stretch for about 75 years, CAL revealed that the project will generate not less than FCFA 2,500 billion. This is certainly a huge figure, but how huge is huge, is the question that immediately came to the minds of authorities of MINIMIDT.
From every indication, government has all reasons to be cautious. The findings of the researchers on bauxite deposit in Ngaoundal and Minim-Martap as announced by Eric Lavalou, one of the company officials October last year is hope rekindling. The Cameroon Alumina Limited would be extracting 5 to 9 million tons of bauxite annually. This entails that should the mineral get exhausted after 75 years, the company would have extracted between 375 and 675 million tons.
How much the company mining the bauxite would gain, is anyone’s guess but the FCFA 2,500 billion to be paid into the State coffers within 75 years remains unsatisfactory at first sight. The Cameroon Alumina Limited has once more been asked to go back to the drawing board and work in accordance with the exigencies of the national mining law. Even though it had earlier been agreed the company would be building an alumina refinery with a capacity of 2 to 3 million tons a year, the new dispensation according to Fuh Calistus Gentry, the secretary of State at the Ministry of Industries, Mines and Technological Development, must consider the recent billed the National Assembly passed into law whereby 25 percent of minerals extracted from the country must be processed locally.
Some people are quick to interpret government’s attitude towards mining companies are exaggerated cautiousness. Whether this is true or false, is another issue. But it is important to note that mining is deals so much with estimates and assumptions. Oil exploration companies for instance will tell a better story. In many cases they drill wells where they initially suspected to find oil just to withdraw in desperation. In the face of this, it would be too naïve to count on what has not been proven. This is where government’s cautiousness comes in.
