CAMEROON Law and Practice Contributed by: Aurélie Chazai, Paul Ariel Kombou, Vanina Fonga and Dylan Dave Tchouankeu, Chazai Wamba
4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes The tax regime applicable to mineral exploration and mining activities in Cameroon is primarily governed by the Mining Code, supplemented by the general tax legislation. It relies on a combined system of taxes, duties, fees, and royalties applicable throughout the life cycle of a mining project (exploration, develop - ment and production). Royalties and Basis of Assessment Cameroon applies revenue-based rather than profit- based royalties. These include proportional mining royalties, such as ad valorem taxes on mineral sub - stances and extraction taxes on quarry substances. They are calculated on the market value of the extract - ed minerals, generally determined with reference to international market prices. They are therefore clearly linked to gross revenue/turnover, not to profits. Tax Neutrality Between National and Foreign Investors The legislation does not establish a differentiated tax regime based on the investor’s nationality. The dis - tinctions made by law relate to the type of activity or mining title, not to whether the operator is domestic or foreign. 4.2 Tax Incentives for Mining Investors and Projects In Cameroon, mining investors benefit from a series of tax incentives, particularly at the exploration stage, with additional advantages during production. Exploration Phase Incentives Holders of exploration permits benefit from meas - ures aimed at reducing entry costs and encouraging investment at this high-risk phase, including: • exemption from business licence tax; • free registration of incorporation, extension and capital increase deeds, as well as transfers of undeveloped land; and • VAT exemption on eligible local purchases and imports of mining equipment and materials directly related to exploration operations.
3.4 Energy-Transition Minerals To date, Cameroon has not adopted any specific leg - islation exclusively targeting energy transition or criti - cal minerals, such as lithium, cobalt, rare earth ele - ments, or copper. However, the country is increasingly positioning itself within the regional and international conversation on the subject and has undertaken initia - tives that indirectly support the development of this segment. Policy Dialogue and Strategic Positioning Cameroon has actively supported and hosted high- level mining and energy transition forums, including: • the Cameroon International Mining Convention and Exhibition (CIMEC); and • meetings of the OEACP Council of Ministers focus - ing on strategic minerals for the global energy transition. These initiatives demonstrate the government’s inten - tion to integrate Cameroon into regional and global strategies for critical minerals and to encourage investment and exploration in this emerging field. Broader Energy Transition Policy Context Although not explicitly dedicated to critical minerals, national policy initiatives linked to clean energy and extractive sector governance indirectly influence this area. According to the EITI Cameroon 2022 Report, the national energy transition agenda – including projects in hydropower and renewable energy – is prompting reflection on the future role of the min - ing sector and the potential development of minerals essential to green technologies. In light of the above, Cameroon is currently in a stra - tegic reflection and policy-shaping phase regarding energy-transition minerals. While it demonstrates insti - tutional awareness and engagement at international and national policy levels, no dedicated legislative framework or targeted government programme spe - cific to these minerals has yet been formally enacted.
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