Cameroon’s artisanal gold sector shaken by mining approval freeze
The artisanal mining sector in Cameroon is facing serious disruptions after the National Mining Company (SONAMINES), the state entity responsible for gold and diamond marketing, suspended the issuance and renewal of licenses for purchasing offices. This abrupt halt has triggered tensions within the industry and drawn sharp criticism from the National Union of Diamond, Gold and Artisanal Miners’ Offices Promoters (SYNAPROBADIOCAM).
Ousmanou Aladji Hamadou, the union’s leader, is urgently calling for the resumption of administrative procedures. He warns that nearly 200 purchasing offices are currently unable to operate legally due to expired licenses, which he argues is pushing the precious metals trade into unregulated, informal channels. Without valid permits, these businesses are forced to halt operations or risk operating outside the law, further complicating efforts to monitor and tax artisanal gold production.
Administrative freeze sparks unintended consequences
While SONAMINES intended to tighten oversight of Cameroon’s porous artisanal mining sector, the freeze has instead created a vacuum. Official channels have narrowed, leaving gold produced by artisanal miners with few legal outlets. As a result, much of the country’s gold is now leaving through informal routes, bypassing fiscal obligations and official production records.
The union estimates that hundreds of operators—both established purchasing offices and new applicants—are affected by the freeze. Many are now either stalled in uncertainty or drifting toward grey-market networks. Though exact revenue losses for the Cameroonian Treasury are hard to quantify, the absence of legal trade channels weakens the government’s ability to track production and collect taxes, undermining national efforts to formalize the sector.
Cameroon is not alone in this struggle. Across Central Africa—from Congo to the Central African Republic—governments face similar challenges in reining in artisanal gold flows. Weak regulatory frameworks and cross-border smuggling, driven by tax disparities and loopholes, continue to siphon off a significant share of regional gold output.
SONAMINES under fire as sole gateway to formal gold trade
Established to streamline mineral governance and centralize the marketing of precious metals, SONAMINES plays a pivotal role in Cameroon’s mining ecosystem. It is tasked with ensuring the state retains a pre-emption right over gold and diamonds while managing relationships with private purchasing offices. However, when it suspends license approvals, the public enterprise becomes a focal point of frustration.
Union representatives argue that the freeze not only shuts down legitimate businesses but also harms artisanal miners, particularly those in the East, Adamawa, and Northern regions. These miners rely on purchasing offices to sell their gold; without them, informal buyers—often foreign operators—step in, exporting gold without contributing to Cameroon’s tax base.
Balancing regulation and market access to curb informality
SYNAPROBADIOCAM is urging structured dialogue with mining authorities and SONAMINES. The union’s proposal centers on two priorities: restarting license issuance under clearer rules, and implementing a monitoring system that supports—not stifles—legal operators. Formalizing 200 purchasing offices, the union argues, would not only expand tax revenue streams but also strengthen traceability across the gold supply chain.
The issue extends beyond union demands. It reflects Cameroon’s broader goal of diversifying its extractive economy, which has long relied on hydrocarbons. Properly regulated artisanal gold could become a major contributor to public revenue and a source of rural employment—if the right balance is struck between oversight and accessibility.
Whether SONAMINES and the Ministry of Mines opt to lift the freeze with adjusted conditions or tighten approval criteria remains uncertain. Either way, the credibility of Cameroon’s national marketing system hinges on the government’s ability to harmonize regulatory rigor with operational efficiency. The union and authorities are now engaged in direct discussions to resolve the impasse.