What's Happening?
The government of Cameroon has announced plans to close artisanal and small-scale gold mining sites that do not comply with closed-loop ore processing systems. This decision, set to take effect in January 2026, comes in response to evidence of significant
gold smuggling, particularly to the United Arab Emirates. The move aims to improve traceability and reduce smuggling by channeling gold production through the state-owned mining company, SONAMINES. The initiative follows a transparency report revealing discrepancies between Cameroon's reported gold exports and international import data, highlighting the need for stricter control over the country's gold production.
Why It's Important?
This development is significant as it addresses the issue of gold smuggling, which undermines Cameroon's economy by bypassing official channels and reducing potential tax revenue. By enforcing stricter controls and improving traceability, the government aims to formalize the gold mining sector, which is predominantly artisanal and informal. This could lead to increased revenue for the state and better regulation of the industry. However, the challenge lies in balancing enforcement with the livelihoods of those dependent on artisanal mining, as abrupt closures could push activities further underground if not managed carefully.
What's Next?
The Cameroonian government plans to strengthen the role of SONAMINES in purchasing domestic gold production, which could improve traceability and reduce smuggling incentives. Additionally, there is an effort to encourage industrial gold mining projects, which are easier to regulate and tax. The government has yet to detail how it will support miners affected by the closures, a critical factor in ensuring the policy's social impact is managed effectively. The success of similar efforts in other African countries, like Burkina Faso, suggests that with the right support, formalization can lead to increased official gold production.
