PRECASEM

GENERAL PROJECT DATA

 

Name of the project

Capacity Building Project in the Mining Sector (PRECASEM)

Project Code

P122153

IDA Credit Number

5024-0-CM

Implementation unit

Project Coordination Unit (PCU)

Date of signature of the Financing Agreement

June 28, 2012

Effective date

September 26, 2012

Closing Date

June 30, 2017

Amount of USD Credit

 

1. BACKGROUND AND JUSTIFICATION

Cameroon has a strong geological potential for a number of minerals; well managed, this potential could contribute to the country’s economic growth. Cameroon has large deposits of iron ore, bauxite, diamonds, limestone, rutile and cobalt nickel. However, despite the existence of these ores, mining does not yet play a major role in the development of Cameroon, and the mining sector remains marginalized in the economy.

At the mining level, a number of projects are now at an advanced stage of work: the Mbalam iron project operated by CamIron, the Nkamoun nickel-cobalt project near Lomié, owned by Geovic, the bauxite project the Adamaoua (at Minim-Martap and Ngaoundal) operated by Cameroon Alumina) and the Mobilon diamond project near the border with the Central African Republic developed by Cameroon & Korean Mining).

Of all these projects, only two have already benefited from mining licenses (nickel / cobalt in 2003 and diamond in 2011), although the operation itself has not yet started on the ground. Cam Iron has just signed a mining agreement with the government and the operating license will only be issued when certain conditions have been met.

On the purely geological level, geological mapping and global knowledge of the country’s mineral potential remain very limited and now appear outdated. Geophysical and geochemical data remain insufficient for large areas or need to be reinterpreted using modern technologies and approaches where available. Geologists reveal that as of today, more than 50% of the territory remains unknown.

Cameroon is currently at an important turning point in the development of the mining sector. Good revenue management in the extractive industries represents a huge potential for combating poverty and contributing to sustainable development. Indeed, the mining industry is always creating jobs, direct and indirect; it allows the transfer of technology and generates significant revenues, revenues that can constitute the financial potential essential to governments for the development of major infrastructure, driving development for other sectors.

2. OBJECTIVES OF THE PROJECT

The Project Development Objective (PDO) is to improve (i) efficiency and transparency in the management of the mining sector and (ii) the sector’s sustainable development frameworks. To this end, the project focuses on institutional strengthening and local / regional integration of mining activities. It will contribute to the strategic goal of growth and jobs, which extends beyond the scope and timing of this project, to increase the contribution of mining to sustainable growth and development. . It will also participate in the government’s effort to develop the business climate in the sector, improve transparency, access to information and facilitate dialogue among industry stakeholders.

Seen in this light, the project is fully in line with the government’s ambitions as set out in the document “Cameroon: Vision 2035”, which focuses on the exploitation and good management of its natural resources (mining, forestry, agriculture, etc.). .) and on a rapid development of its infrastructures (roads, railways, airports …).

The project is also part of the first pillar of the World Bank’s Country Assistance Strategy (CAS), supporting competitiveness, based on improved efficiency, transparency and sustainability. in the management of the mining sector.

3. BENEFICIARIES OF THE PROJECT

The beneficiaries will be:

  • Cameroonians in general thanks to positive contributions from the development of economic activities around the mining areas;
  • the private sector through the improvement of the investment climate and infrastructure development catalyzed by investment in the mining sector;
  • mining companies that will benefit from better availability of geological data to guide exploration, an improved environment for the allocation and securing of mineral rights, and greater availability of qualified human resources at the national level; (iv) communities affected by the mining activity, which will benefit from local economic opportunities, as well as measures to reduce, mitigate and offset the risks associated with mining activity.

4. INDICATORS OF RESULTS

While the main benefits of mining investments are better measured in the long run (Contribution to Growth and Economic Development), the indicators summarized below will measure progress over the life of the project.

  1. Efficiency in the management of the sector: Number of days to allocate mining titles;
  2. Transparency in the management of the sector: On-line access of historical data and newly acquired geological data;
  3.  Frameworks for the sustainable development of mining:
  • Publication of Mining Revenue Management Guidelines at Local Level
  • Dissemination of tools for local development planning
  • Dissemination of guidance for the development of the local supply chain

5. DESCRIPTION OF THE PROJECT

The project is organized around three (3) components:

Component A: Access to Mineral Resources and Governance of Mining Operations

This component  aims to improve knowledge and access to mineral resources as well as the management of extractive operations. It includes a geology program, support for management of mining rights and operations, and actions to enhance transparency and accountability in the mining sector.

Component B. Integration of Mining into Local and Regional Development

The mining industry often operates in remote areas of the world, which are often socially and environmentally sensitive. In Cameroon, where industrial mining is in its infancy, this is reflected in a number of local and regional development challenges. Exploration activities raise many expectations and sometimes lead to conflicts with conservation activities or other land use activities. At the same time, the fundamental uncertainty of exploration and exploration of unknown mineral resources is not always well understood. Based on international experience, exploitation activities in Cameroon, especially when accompanied by major infrastructure developments,

This component aims to eliminate the main obstacles to the proper integration of mining activities into local and regional development. Three (3) axes will be explored:

B.1 Dynamic Mineral Resource Management System

In accordance with Law 2011/008 of May 6, 2011 setting the guidelines for land use planning and sustainable development in Cameroon, the Government plans to launch land use planning activities in all regions. In this context, support will be provided in areas where mining and infrastructure development may conflict with conservation activities and other land use activities.

B.2 Coordination of stakeholders in the field of mining, forestry and the environment 

A good analysis of potential conflicts and systematic and formal resolution methods is needed.

B.3 Local and Regional Links 

International experience tells us that mining operations also have many social risks. The mitigation of some of these risks is conceivable by valuing local communities, municipalities and other stakeholders in the mining sector, by promoting new economic activities and by improving the efficiency of social services in the zones. mining.

B.4 Mineral Infrastructure Development Framework 

It is a question here of contributing to the development of adequate Public Private Partnerships and increasing the possibilities of sustainable exploitation of the mineral resources of the country.

Component C. Management and monitoring project evaluation

A Project Coordination Unit has already been established and is used to support project coordination and management of procurement, financial management and disbursements; monitoring and evaluation of project implementation.

6. INSTITUTIONAL AND PROJECT IMPLEMENTATION PROVISIONS

Three structures form the Project.

The Ministry of Mines, Industry and Technological Development (MINMIDT): it is the entity implementing the project; he is responsible for the execution and supervision of the project.

The Project Steering Committee (PSC): it is the forum for consultation, guidance and coordination of the implementation of the Project; it is chaired by the Minister of Mines (MINMIDT).

The Project Coordination Unit (PCU): She is responsible for the day-to-day activities of the project.

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