Gains and investment opportunities
1. National context, vision and strategy development
• Cameroon has significant mineral resources and largely untapped. The contribution of the mining sector (excluding oil) in GDP is still marginal (less than 1%).
• However, the country has significant advantages for the development of the mining industry including:
– Abundant natural resources;
– A great energy potential;
– A good level of qualification of the labor base;
– A proven political stability;
– An important world-class mineral deposit;
– Institutional, legal and regulatory framework laid out and attractive;
– The existence of support infrastructure (ports, road and rail);
– A database of geological and mineral data.
• In addition, there are clear opportunities among which:
– Sustained economic growth;
– An enormous potential for sub-regional development;
– Tax and customs benefits (exemption for certain phases);
– Cameroon’s accession to the Kimberley Process;
– Adherence to the EITI being outcome;
– Global demand for mineral resources rose sharply;
– The launch of major infrastructure projects (deepwater port, dam ..)
– The launch of a Programme for Capacity Building of the Mining Sector (PRECASEM).
• In its long-term vision (2035), Cameroon intends to join the ranks of emerging country with a strong industrial and mining sector.
• To accelerate the industrialization, the country has in its Strategy for Growth and Jobs (ECSD), intensify the exploration, exploitation, processing and marketing of mineral resources, attracting in these intensive activities capital and technological investment.
• Today, the country has a clear development strategy and ambitious mining.
1.A. Development strategy in the mining sector
The strategy to develop the sector is divided into four main areas below:
• Axis 1: Improving the legal, regulatory and institutional framework (to make it more suited to the demands of the current economic and social context).
– Finalization of the text mining application code;
– The establishment of the accompanying structures (National Society of Mining, Geological national service ….)
– The completion and extension of the mining policy;
– The capacity of the sector management structures (human, material and financial … PRECASEM).
• Axis 2: Development and improvement of the knowledge of mineral potential.
This line has the following actions:
– The development of reliable maps and geological data (card 1/200000) (updating data mining);
– The establishment of a Geological and Mining Information System (MMIS);
– Dissemination and promotion of geo-scientific data.
• Axis 3: Improving the exploitation of mineral resources
It will consist of:
– Facilitating the development of synergies between the various stakeholders (forum, a platform of exchange);
– The establishment of an attractive fiscal framework;
– The promotion of mineral resources on the national and international level;
– Supervision and modernization of artisanal mining;
– Strengthening infrastructure support to operations (rail, road, port) activities;
– The promotion of employment in the mining sector
• Axis 4: Development of mineral resources (processing)
It will cover:
– Support for the establishment of training facilities in the fields of the mining industry;
– Supporting the development of local SMEs in the extractive industries;
– The establishment of mechanisms for financing industrial companies (joint ventures).
1.B. Legal and regulatory framework incentive
This framework is contained in Law No. 001 of 16 April 2001 Mining Code, as amended and supplemented by Law No. 2010/011 of 29 July 2010and that promotes international investment through various measures and advocates:
– Equality affirmed the international and domestic entrepreneurs before the law (art. 14, 15);
– The benefit of the temporary admission to the materials used for the exploration and the total exemption from taxes and customs duties on spare parts and lubricants necessary for the proper functioning of exploration equipment (Art. 94 );
– Exemption from various taxes (corporate, taxes) and fees for licensees Research (Art.95);
– Total exemption from taxes and customs duties during the construction phase of the mine for materials and capital goods required for the construction, for specific lubricants and a first batch of spare parts. Same exemption up to the first commercial production of imported inputs (s.96);
– The freedom to transfer capital and income guarantees to foreign natural and legal persons who perform funded by a contribution in foreign currency (Art.100) mining investment.
2. Tax and customs benefits
Several tax and customs benefits are available to permit holders of exploration and exploitation:
For these permits, the benefits are:
• Customs advantages:
– Temporary for equipment as well as professional equipment, machinery, construction vehicles;
– Total exemption from customs duties for materials and spare parts needed to operate the equipment and professionals as well as for specific lubricants for the operation of equipment and facilities listed above equipment;
– The above benefits are also granted to subcontractors and suppliers licensees research.
• Tax benefits:
– Exemption from registration fees for mining operations except those relating to leases and rentals for residential use;
– Exemption of the following taxes: Income tax (IS);
– Taxes on industrial and commercial profits (BIC);
– Proportional taxes on Income from Capital (TPRCM);
– The special tax on salaries paid abroad;
– The value added tax (VAT).
For these permits, the benefits are:
• Customs advantages:
– Exemption from taxes and customs duties on equipment, materials, inputs and capital goods needed for production as well as the first batch of spare parts;
– Exemption from taxes and customs duties on equipment replacement incident technique and equipment for use in an extension of the operation;
– Total exemption up to the date of first commercial production of taxes and tariffs on imported inputs;
– Total exemption up to the date of first commercial production of taxes and customs duties on the import of materials and equipment needed for the construction of buildings;
– Total exemption from taxes and customs duties on specific lubricants.
• Tax benefits:
– The holder of a mining license is subject to a special tax law. However, until the date of first commercial production
– It is exempt from import VAT on materials and equipment;
– He enjoys spreading on one (1) year from the payment of registration of acts of company creation, extension and increase of human capital;
– Products intended for export are subject to a zero rate of value added tax (VAT) where the goods are subject to this tax.
– These benefits are stabilized at the level they were at the award of the title, however, any provision of a new favorable tax and customs regime of common law is extended to holders of the operating license if they are demand.
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