Government Takes Measures to Curb Gold Smuggling Following Discrepancies in Reported Data

Mines Minister states that gold reserves stand at 1,500 kg, while the World Gold Council reports zero

By MMI

The Cameroon government says measures have been put in place to crack down on the smuggling of gold out of the country.

Following a meeting with the national mining company, mining sector operators, and holders of semi-mechanized artisanal mining permits, Mines Minister Fuh Calistus Gentry announced that beginning February 20, the government will start closing sites belonging to all non-compliant holders of semi-mechanized permits.

This action is in accordance with Article 168(2) of Law No. 2023/014 of 19 December 2023 on the Mining Code.

According to the minister, authorized artisanal miners must operate within a closed-loop system or present a partnership agreement with an operator who possesses such a system, and submit it for his approval.

Gold Smuggling

Before these measures were introduced, the ministry faced significant scrutiny over gold exports.

A 2023 report submitted to the Extractive Industries Transparency Initiative revealed that Cameroonian customs authorities declared 22.3 kg of gold, while international statistics indicated that 15.2 tonnes of gold declared as originating from Cameroon were exported to the United Arab Emirates.

In light of this discrepancy, the Ministry of Mines stated that it is responsible only for defining and implementing mining policy.

The National Mining Company (SONAMINES) is tasked with managing and controlling gold production and holds exclusive rights to commercialize gold.

“Furthermore, gold production in Cameroon is primarily derived from artisanal and semi-mechanized mining. As is common in other African countries, these artisanal activities are often carried out without prior feasibility studies, which prevents the state from accurately forecasting production,” the minister stated.

“SONAMINES collects the consolidated mining tax (in kind) and export duties on behalf of the State based on declarations whose accuracy and transparency are questionable. Additionally, despite having exclusive rights to market gold, SONAMINES currently lacks the financial and technological resources to buy all the gold produced by private operators or to effectively monitor production,” he added.

According to Fuh Calistus, the discrepancies stem from challenges in monitoring porous land borders, which are extensively used by operators.

He noted that these borders are also used by operators from neighboring countries to transport gold to the United Arab Emirates, further compounding the discrepancies.

This situation prompted the recent meeting and the measures introduced to curb smuggling. According to Barrister Akere Muna, the lack of transparency has been costing the State of Cameroon billions of francs CFA.

1,500 kg of Gold in Reserve

The minister also stated that actions taken in recent years have increased Cameroon’s gold reserves from 37 kg to 1,500 kg.

However, the World Gold Council reports that Cameroon does not hold any gold reserves.

The volume in reserve is recorded as zero—a figure that contradicts the statistics provided by Minister Fuh Calistus.