CAMEROON Law and Practice Contributed by: Aurélie Chazai, Paul Ariel Kombou, Vanina Fonga and Dylan Dave Tchouankeu, Chazai Wamba
5.3 International Treaties Related to Exploration and Mining
5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining Domestic Securities Markets The domestic capital market in Cameroon, including the Douala Stock Exchange, plays a minimal role in financing mining and exploration projects. It is shal - low, illiquid, and rarely used to finance exploration or mining projects, which mostly rely on private or share - holder funding. International Securities Markets Mining companies operating in Cameroon may access international capital markets to raise funds for explo - ration and development. Regulatory Aspect Even without local listings, parent companies abroad can raise capital for Cameroonian subsidiaries. There are no specific restrictions on using foreign markets, aside from CEMAC exchange control rules and stand - ard reporting requirements. 5.6 Security Over Mining Tenements and Related Assets In Cameroon, mining rights belong to the State and are granted through mining titles. Security over these titles is subject to strict oversight, and any encum - brance or transfer usually requires approval from the mining authorities. Financing arrangements generally rely on security over operational assets such as plant, machinery, equip - ment, inventories, receivables, and bank accounts, rather than the mining titles themselves. Under the OHADA framework, security interests must be registered with the commercial registry (RCCM) to be enforceable against third parties. Lenders also ensure that operators have lawful access to the land where mining occurs, through ownership, lease, or other recognised land-use rights, as a condi - tion precedent to financing.
Cameroon is not a party to any treaty specifically dedicated to promoting and protecting mining invest - ments. However, it has ratified several treaties that provide general protection for foreign investments, which also apply to the mining sector. Multilateral Treaties • Washington Convention (ICSID): enables foreign investors to submit disputes with the State to inter - national arbitration, enhancing legal certainty and protection. • Seoul Convention (MIGA): offers guarantees against non-commercial risks, such as expropria - tion, political unrest, or armed conflict, safeguard - The BITs include protections such as fair and equita - ble treatment, security against expropriation, and the right to repatriate capital. Examples include the Cameroon-Canada, Cameroon- Netherlands, Cameroon-Romania, and Cameroon- Mali BITs. ing investments in mining projects. Bilateral Investment Treaties (BITs) These multilateral and bilateral instruments collec - tively strengthen the legal security and predictability for foreign investors operating in Cameroon’s mining sector. 5.4 Sources of Finance for Exploration, Development and Mining Mining activities in Cameroon are predominantly financed through: • equity investments from foreign and private inves - tors (especially at the exploration stage); • debt and project finance for development and exploitation; • strategic partnerships and offtake-based financing; and • limited support from development finance institu - tions. Public funding plays a marginal role, with the mining sector driven mainly by private and foreign capital.
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