Cameroon to Earn $60M Annually from First Underground Gold Mine

Cameroon’s first underground gold mine, located in Colomine in the East region, is set to generate CFA 30 billion ($60 million) in annual revenue, according to Interim Minister of Mines, Industry and Technological Development, FUH Calistus Gentry. 

Operated by local company CODIAS – with a 10% stake held by the state-owned Société Nationale des Mines – the project marks a milestone for the country’s mining sector.

CODIAS and the government signed a five-year mining agreement in September 2022, initially targeting 500 kg of gold per year. Following state approval for a closed-circuit gold recovery system, CODIAS secured customs exemptions for specialized equipment, allowing projected output to rise.

The mine is now expected to produce 600 kg annually in its initial phase, with total production estimated at 12,000 kg over 20 years. This growth reflects Cameroon’s broader ambition to harness its mineral wealth as a catalyst for economic diversification and sustainable development.

The project will contribute between 0.5% and 1% of annual pre-tax revenue to a local capacity development fund, while the Ngoura municipality – where the mine is located – will receive 5% of project revenue through the ad valorem tax.

The Colomine gold project is one of 14 priority mining developments monitored by the Ministry. Other key projects include the iron ore sites of Kribi-Lobé, Mbalam-Nabeba, Bipindi-Grand Zambi and the bauxite project at Minim-Martap.

The processing plant at Colomine is currently in its testing phase, with commercial production expected to commence once systems are fully operational.