Interview of Dr. Fuh Calistus Gentry, Secretary of State, Ministry of Mines, Industries and Technological Development.

Pre-feasibility studies of the Mammel iron ore project are now over. What does this mean?

As the name suggests, a pre-feasibility precedes feasibility. It comes in to give the scope of the project but certain parameters might not be completely defined. For example, the most critical parameter in a feasibility study is the reserves which must be proven. In a pre-feasibility, the reserves might be of an indicated nature. With the pre-feasibility, we will then give directives on issues that need to be addressed to attain the feasibility. A pre-feasibility will not make you liable to acquire financing in financial institutions because they only get involved when the feasibility studies are already complete with proven reserves. Iron ore has parameters like the density. These are aspects that must be defined because the density can change a lot in the reserves and when the density changes by a fraction of just 0.5, it would make a very big difference in millions of tons in the reserves. Until we get the final feasibility and the Director of Mines gives his go ahead, can any negotiation start for a mining convention.

What next after the pre-feasibility studies?

We have asked them (Sinosteel Cam Sa) to give us a chronogramme (calendar) of the project which will allow us to make comments. They need to tie up their reserves because even if a country has to give tax incentives, it would depend on the volume of the reserves. The quantity will allow us to extrapolate for how many years the minerals would be exploited. We have insisted that they hasten up with their work and we believe that when we get the chronology of their activities, we will be able to start scheduling them.

What does the project represent in the country’s mining sector and for what gain?

This is just one in a series of projects that are coming up. Very soon, we will start negotiating a mining convention for bauxite in Ngaoundere. From Mbalam to Kribi, we have many other projects. There are iron ore projects in Nkout, Ngouvayang etc. We have about five to six projects lined up between Mbalam to Kribi. The Mammel project has been there long ago and the country has done a lot of work with bilateral and multi-lateral set ups to bring out the reserves. So, the Chinese Sinosteel came up to work to increase the certainty and quantity of what was on. If we go by their figures, they are around 600 million tonnes which is an average operation. But the beauty of this operation is that it is very close to the sea port (about 60 km from Kribi). So, it comes with very strong advantages because of its proximity to the port. It will increase out net exports; it will allow us to ensure at least 15 per cent local processing of mineral products which will generate a lot of jobs. They also plan to build a port terminal and there are other bits and pieces which will have a big impact on the economy of the country.

You are talking of other projects, where are we with them?

Like the bauxite in Adamawa, we are going to start negotiating for a mining convention. They have given us their feasibility report. The deposit in Nkout is advancing well. They have found substantial quantities of iron ore which allows us to think that we will be having another mine development in Nkout. We also have the Ngouvayang prospects which are being developed by Australians with a Korean input; we have the CMC that operates in the South which is coming up with very good results. There is also titanium in Akonolinga which we are trying to see the bright prospects we have and Fongo Tongo with bauxite. We will be going to the field to see into it that non-performing companies will have their licenses relinguished so that companies that are more performing would be attributed those licenses.

What is being done to guarantee the interest of Cameroonians in all these projects?

The interest of the State first. The mining code was revised and 10 per cent of every mining project is free hold of the State. There is an extra 15 per cent which the State, depending on the nature of the project, might decide to acquire and for which the State will pay. There are also quotas that are reserved for Cameroonians and there are also provisions that 15 per cent of mineral products are to be processed locally. This is a real generator of employment and activator of the economy. We do all to ensure that the interests of Cameroonians are protected within the ambits of the law.