What was announced remained probable reserve until the results of feasibility studies were released almost two years later to confirm the deposits, opening floodgates of discussions with government on its effective production. The handwriting became clearer in July this year when the government and the said C&K Mining Inc, in a ceremony presided at by the Prime Minister, Head of Government; Philemon Yang signed a diamond mining agreement at the Star Building. The agreement as explained by the Minister of Industries, Mines and Technological Development, established the rights and obligations of both the government and the company, defining in clear and precise terms environmental and social obligations of the two partners.
The agreement was in effect, an intermediary document constituting an important stage leading to the signing of a decree by the Head of State granting Diamond Production Licence to C&K Mining Inc. Last Friday December 17, 2010 Presidential decree delivering a mining production licence for diamond and subsidiary substances to the company is a logical end to all the preceding negotiations carried out within the framework of the country’s mining law. The company will produce diamond in an area of 236.25 kilometres square for a period of 25 years renewable. Last Friday’s decree brings to two the number of mining licences issued to companies in the country. The first ever licence was delivered to Geovic Cameroon for the production of Cobalt, Nickel and Manganese in Nkamouna near Lomié, still in the East Region.
Now that the C&K Mining Inc has a licence, what next; is the question on every lip? This question is certainly not out of place considering that the first company to obtain a mining licence has barely moved an inch from its exploration stage. That notwithstanding, the determination by government to maximise the extraction of resources underneath in order to enhance the country’s economy remains quite visible. Whereas the mining licence translates the will, critics, continue to think the administration has been too heavy in granting the licences to many companies that express the zeal to explore and produce minerals in Cameroon. The Mobilong licence serves as a challenge and at the same time an encouragement for companies that have the desire but are yet to fructify their zeal by fulfilling the conditions required by the country’s mining law for the execution of such projects.
If things were to move the way they ought to after the issuance of the licence, about 50,000 carats of diamond will be produced annually from Mobilong at the initial stage of production. This, according to authorities of C&K Mining Inc, could increase to 800,000 carats at full production at the level of hard rock conglomerate, making provision for about 6,500 jobs, 5,000 of which are direct.
