The meeting that will be presided over by the Governor of the East Region, Lele L’afrique Tchoffo, falls in line with the launch of “Operation Gold” which aims at increasing Cameroon’s gold reserves at the Bank of Central African States, BEAC with at least 70 per cent production.
According to Paul Ntep Gweth, Coordinator of the Small-scale Mining and Promotion Framework Unit, CAPAM, the old contracts that were based on the principle of monthly flat rate payments will be replaced by the principle of production and value sharing which guarantees greater benefits for small-scale miners, technical and financial partners, mining companies, administrative and local stakeholders, as well as the state treasury. “From a transaction on 12 kilogrammes of smelted gold produced per month, for example, the new contract principle produces profits of FCFA 35 million instead of FCFA 3 million under the old contract principle,” he explained to Cameroon Tribune.
CAPAM officials also explained that the meeting will emphasise the need to halt clandestine transactions and move faster towards the adoption of advanced mechanisation of excavation and processing in the gold reserves of Betare Oya area of East Region that will soon be submerged by the water to be created by the construction of the Lom Pangar hydroelectric dam.
The increase in production of gold which now sells at FCFA 22,000 per gramme is expected to boost Cameroon’s gold reserves at BEAC and increase the country’s special drawing rights at the International Monetary Fund, IMF. It will also help in raising funds to finance major development projects outlined under the Growth and Employment Strategy Paper, GESP.
