Presentation_Canada_Afrique_MINMIDT.pptx

A solid description of Cameroon mining

1. 1 Canada-Africa Business Summit September 2014 By Hon. SECRETARY OF STATE FUH. Calistus Gentry, PhD REPUBLIQUE DU CAMEROUN MINERAL RESOURCES: EXPLORATION AND EXPLOITATION TO BOOST ECONOMIC DEVELOPMENT

2. CAMEROON’S MINING SECTOR PRESENTATION PLAN PART I PART II PART IV PRESENTATION OF CAMEROON ECONOMIC IMPACT OF MINING PROJECTS 2 MINING PROJECTS PART III

3. 3 PART I PART III LOCATION CLIMATIC CONDITION PART II PART IV The REPUBLIC of CAMEROON lies midway between West and Central Africa. It stretches from the Gulf of Guinea in the South-West to Lake Chad in the North and lies approximately between 11° of ( lattitude (01° 80f - 13° 00f N) and 08° longitude (08° 251 - Yaounde , 2008 2 16°20f E). It is bounded to the: ■ South-West and West by the Gulf of Guinea (the Atlantic Ocean) and the Federal Republic of Nigeria respectively ; ■ North by Lake Chad ; ■ North-East and East by the Republics of Chad and Central Africa respectively; ■ South by the Republics of Congo, Gabon and Equatorial Guinea ; Population: January 2010 estimation gives 19.4 million inhabitants . PRESENTATION OF CAMEROON INFRASTRUCTURE POLICY

4. 4 PART I PART III LOCATION PRESENTATION OF CAMEROON PART II PART IV Equatorial climate characterized by hot and wet weather as well as heavy and frequent rainfalls (particularly from June to October). And semi-arid climate in the north and far north characterized by a rainy season from May to September, a dry season from October to April with the hottest period occurring between March and May. Furthermore, between December and February there are frequent powerful winds transporting dust and sand blowing from the Sahara desert towards the south reducing visibility. Mont Rhumsiki in the Far North Region Concession area leased by Herakles Farms in the coastal rainforest of Cameroon CLIMATIC CONDITION INFRASTRUCTURE POLICY

5. 5 PART I PART III LOCATION PRESENTATION OF CAMEROON PART II PART IV CLIMATIC CONDITION INFRASTRUCTURE POLICY INFRASTRUCTURE POLICY Cameroon government intends to develop a regional policy of infrastructure ( iron ore province of CMR-GAB- RC transport corridor).

6. 6 PART I PART III LOCATION PART II PART IV Hydroelectric dams of Edea , Song- Loulou , Lagdo for a total of 1200 MW; Nyassa in Douala thermic central of gas has been launched for energy capacity enhancing; Construction of Lom-Panger and Memvele hydroelectric dams starts 2008; Construction of a thermic central of gas at Kribi ( 150 MW) 5000 km of asphalted roads, 45000 km of maintained laterite roads; Three International ( Douala, Yaounde-Nsimalen & Garoua ), and three national airports for home flights; PRESENTATION OF CAMEROON CLIMATIC CONDITION INFRASTRUCTURE POLICY

7. 7 PART I PART III LOCATION PART II PART IV Railway linking Douala – Yaounde – Ngaoundere & western railway (1009 km); Deep sea port at Kribi geotechnical & topographical studies have started in January 2010; Limbe deep sea port preliminary studies have started; Opportunities for BOT negotiations with the government on rail reoptimization /built PRESENTATION OF CAMEROON CLIMATIC CONDITION INFRASTRUCTURE POLICY

8. 8 PART I PART III LOCATION PART II PART IV PRESENTATION OF CAMEROON CLIMATIC CONDITION INFRASTRUCTURE POLICY Proactive Government-led actions for a sustainable and responsible mining development Increase Mining sector’s impact on GDP ; A sub-regional approach to mining development (infrastructures, transportation and energy) ; Fiscal and duty incentives during all phases of project development; Cameroon’s admission as Kimberley Process Participant; Cameroon declared as an EITI compliant state; Launching of ambitious large scale infrastructure projects ( Kribi deep sea port, lom Pangar Dam...) ; Launching of a work program under the supervision of the Mining Sector Capacity Building Project (PRECASEM in French).

9. CAMEROON’S MINING SECTOR PRESENTATION PLAN PART I PART II PART IV 9 PART III

10. 10 PART I PART III GEOLOGY & MINERAL POTENTIAL ATTRACTIVE MINING CODE CAMEROON’S MINING SECTOR PART II PART IV Cameroon’s geological context is favorable to the occurence of mineral substances such as precious metals (gold, diamonds) base metal, rare metals etc, and hydrocarbons. So that we can have for example in : Congo Craton - Archaean Greenstone belts (South): iron ore ( Mbalam , Kribi ), uranium ( Lolodorf ), Diamond ( Mobilong ); Central Cameroun shear - Poli series (North): uranium, saphire , gold; Sanaga shear zone - Lom series (East): gold Pan African Mobile Belt: (Placer gold); Sedimentary basins: oil & gaz (Douala, Campo, Kribi ) salt, sapphire ( Mamfé ). DEVELOPMENT STRATEGY

11. 11 PART I PART III GEOLOGY & MINERAL POTENTIAL ATTRACTIVE MINING CODE CAMEROON’S MINING SECTOR PART II PART IV NEW GOVERNMENT SPONSORED CAPACITY BUILDING PROJECT FOR THE MINING SECTOR In line with its vision for a sustainable mining development, the government has launched an airborne geophysical survey program under the supervision of the Mining Sector Capacity Building Project (PRECASEM in French). Project Contractor : Geotech Airborne Limited Activities : Magnetic and radiometric data collection Subsequent Activities : Field geochemical sampling and geological mapping of the areas covered DEVELOPMENT STRATEGY

12. 12 PART I PART III GEOLOGY & MINERAL POTENTIAL ATTRACTIVE MINING CODE CAMEROON’S MINING SECTOR PART II PART IV Yaoundé, 2014 DEVELOPMENT STRATEGY

13. 13 PART I PART III GEOLOGY & MINERAL POTENTIAL ATTRACTIVE MINING CODE CAMEROON’S MINING SECTOR PART II PART IV DEVELOPMENT STRATEGY Current Cameroon mining cadastre

14. 14 PART I PART III GEOLOGY & MINERAL POTENTIAL CAMEROON’S MINING SECTOR PART II PART IV Distribution list of current exploration permits and mining licenses in Cameroon ATTRACTIVE MINING CODE DEVELOPMENT STRATEGY Mineral resources Number of Exploration Permits Number of Mining Licenses Iron 18 Nickel-Cobalt-Manganese 02 01 Bauxite 06 Uranium 07 Tin and Wolfram 03 Gold 57 Diamond 04 01 Precious stones 03 Tungsten 01 Rutile and Kyanite 08 Sapphire 02 Limestone 03 01 Marble 05 02 Ornamental stones and other minerals 06 Total 125 05

15. 15 PART I PART III GEOLOGY & MINERAL POTENTIAL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE DEVELOPMENT STRATEGY Four-Point Strategy to develop the mining sector 1) Improved institutional, legislative and legal frameworks through  : Completion and enactment of mining code by-laws ; Sensitization of mining sector stakeholders with the new code; Enhancement of mining administratives capacities with respect to control and supervision (HR, equipments, financial, technical -PRECASEM).

16. 16 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE 2) Work programs designed to better assess mineral potential by: The elaboration of reliable and detailed geological maps (at 1/200 000 scale) ; The creation of a modern mining and geological information system (SIGM in French) ; The promotion and sharing of geo-scientific data. DEVELOPMENT STRATEGY Four-Point Strategy to develop the mining sector ( ctd .)

17. 17 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE 3) Improvement of production capacity of the mining industry: Facilitating the creation of synergies between mining sector stakeholders (discussion forums between administration and producers, support to artisanal mining development) ; Implementation of attractive mining code; Promotion of mining and processing industries; Construction and maintenance of support infrastructures (rail, roads, power, etc.); Encourage training programs to meet labor demands of the industry. DEVELOPMENT STRATEGY Four-Point Strategy to develop the mining sector ( ctd .)

18. 18 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE 4) Implementation of a strategy for local manufacturing of mineral resources through: Support training programs designed to address labor demand of metallurgical and other relevant manufacturing industries; Support local small and medium scale manufacturing entrepreneurs; Facilitate access to capital for small and medium scale entrepreneurs (joints-ventures). Four-Point Strategy to develop the mining sector ( ctd .) DEVELOPMENT STRATEGY

19. 19 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE The Cameroon Mining Code (Law of 16th April 2001), modified and completed by certain dispositions of law N°2010/011 of 29th July 2010, the decree N°2002/648/PM applies on the following fundamental options: The Cameroon mineral resources remain an exclusive property of the State. The State administers them on behalf and on the account of the Cameroonian people; The mining domain is opened to all enterprise without discrimination; The mining activities within the national territory are subject to an adequate administrative preliminary act (authorization, license) issued by the competent authorities. DEVELOPMENT STRATEGY

20. 20 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE The attribution of a mining title is based on certain formalities clear, simple and transparent. At equal technical and financial competences, the principle of ‹‹FIRST COME, FIRST SERVED›› is applied and the deadline of instruction for submission of applicable documents for the mining title is defined. The liberty to transport capitals and revenues is guaranteed. Recommending all disagreements to be settled amicably, the State grants the possibility to mining operators to undertake court procedures or to solicit national or international arbitration. DEVELOPMENT STRATEGY

21. 21 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE The State looks out for efficiency by: Obligation of work and minimal expenses; The payment of a superficial tax. The mining legislation defines the principles and processes of control relative to a durable development; The State looks out for a harmonious relationship between all the actors of the artisanal and industrial mining sectors. DEVELOPMENT STRATEGY

22. 22 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE ACTIVITY TYPE MINING TITLE ARTISANAL Natio nals only Individual Prospector Card Departmental Level (proof of residence) Issued by departmental delegate in charge of mines and valid for 12 months renewable Artisanal Mining Authorization 100 x 100m x 4 contiguous zones with a maximum depth of 30 m May lead to an exploration permit or a mining license Transactions on mining titles allowed Delivered by the Regional delegate in charge of Mines for a 2-year period renewable (15-day processing time) Artisanal Quarry Manual or limited mechanization (no blasting allowed) Zones delimited by the departmental delegate in charge of Mines. Municipal Taxes DEVELOPMENT STRATEGY

23. 23 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE TYPES D’ACTIVITES MOYENS D’INTERVENTIONS INDUSTRIAL Recognition permit Systematic investigation or itinerant to detect the indexes The surface area shall not exceed 10 000 km2 in a polygonal block Non-exclusive and non-transmissible Delivered by the Ministry of Mines Valid one year renewable Research permit Localize and evaluate the mineral deposits Initial period: 3 years Tow renewals of a maximum period of 2 years Surface area not exceeding 500 km2 Exclusive occupation Delivered by the Ministry in charge of Mines DEVELOPMENT STRATEGY

24. 24 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE INDUSTRIAL Exploitation Permit Mining convention Execution activities framework in an exploitation permit ordered by partners STATE/OPERATOR Presidential decree 45 days after 60 days of the Minister Validity: 25 years Unlimited renewals for a period of 10 years Quarries Temporary: < 2 years Exploitation authorization Permanent: ≥ 2 years Exploitation permit Domestic: exploited by the land owners for non commercial but individual purpose, declaration to the Divisional Delegate of Mines DEVELOPMENT STRATEGY

25. 25 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE The mining code envisages: 1- A caution Research permit (amount equal to three time of expenses as precise in the working program ) Exploitation permit: amount cumulated at 2.5% of the global investment before the first commercial production 2- Fixed tax (attribution, renewal, transfer of mining titles) 3- Superficial tax or charges: rentage paid every year to the State by the mining operators 4- Tax at extraction (quarry substances): Soft: 150 CFA /m3 and Hard: 300 CFA/m3 DEVELOPMENT STRATEGY

26. 26 PART I PART III GEOLOGY & MINERAL POTENTIEL CAMEROON’S MINING SECTOR PART II PART IV ATTRACTIVE MINING CODE 5- Ad valorem Tax (value added tax) (Mining substances) Precious stones (diamonds…) :8% Precious metals (gold…) : 3% Basic metals: 2.5% 10% for the local population 15% for the council 25% for the control of activities 50% for the public treasury Taxe ad valorem Extraction Taxe DEVELOPMENT STRATEGY

27. 27 CAMEROON’S MINING SECTOR N° ITEM APPLICABLE SCHEME 1 Material used for research and professional equipment, machines, site vehicles, detached and replacement parts Temporary admission Extension to middle men and suppliers 2 Replacement parts necessary for the functioning of the materials and professional equipments Custom duties and tax exoneration (middle men and suppliers) 3 Specific lubricants for material and research equipments Duties and tax exoneration (middle men and suppliers) 4 Registration duty relative to mining operations except for lease and rentage for habitation usage Exoneration 5 Company tax ( CT) ; Tax on industrial and commercial benefits (ICB) Exoneration 6 Proportional tax on revenue for movable capitals (PTRMC) Exoneration 7 Special tax for remunerations deposited abroad Exoneration 8 Value added tax Exoneration FISCAL AND DOUANIER SCHEME ( 1. Research phase)

28. 28 CAMEROON’S MINING SECTOR FISCAL AND DOUANIER SCHEME (2 . Exploitation Phase) N° ITEM APPLICABLE SCHEME 1 Step of mine construction Equipment , material, inputs and equipment goods necessary for production Custom duties and tax exoneration 2 Starting of the mine First parcel of replaced parts and equipment accompanying the starting except for touristic vehicles, materials and office furniture Office duties and tax exoneration

29. 29 CAMEROON’S MINING SECTOR FISCAL AND DOUANIER SCHEME (2 . Exploitation phase (continuation)) 3 Functioning period of the mine Replacement equipment in case of technical incident or destined for an extension of exploitation activities Custom duties and tax exoneration 4 Importation of input materials, equipments for construction of batiments Value added tax Total exoneration until the date of first commercial production noticed by a joint order of the Ministers in charge of Mines and Finances 5 Specific lubricants Total exoneration of custom duties and taxes 6 Services rendered Exempted from custom duty exoneration

30. 30 CAMEROON’S MINING SECTOR FISCAL AND DOUANIER SCHEME (2 . Exploitation phase (continuation and end)) 7 Registration tax relative to mining operations except from that pertaining to lease and rentage for habitation usage Exoneration 8 Contribution for trade license Exoneration 9 Registration tax on the acts of company creation, or prorogation and capital increase Authorized period for the payment: one year 10 Products destined for local consumption Possibility of duties and taxes applied on similar products imported

31. PRESENTATION PLAN PART I PART II PART IV 31 MINING PROJECTS PART III

32. 32 PART I PART III NI-CO IN NKAMOUNA ACHIEVEMENTS MINING PROJECTS PART II PART IV (1) October 16, 2009: Increase in resources at the Nkamouna Cobalt Project Measured and indicated resources increased 97% to 120.6million tonnes . Inferred resources increased 25% to 202.5 million tonnes. (2) December 9, 2009: Lycopodium appointed to update feasibility studies ; deliverable date Q2 2010. (3) December 16, 2009: Standard Chartered Bank engaged by Geovic Mining Corp as financial advisor to the Nkamouna Cobalt Project.

33. 33 PART I PART III NI-CO : RESOURCES & RESERVES MINING PROJECTS PART II PART IV Mine Permit: 1,250 km 2 Nkamouna Proven & Probable Reserves: 54 million tonnes 0.25% cobalt, 0.69% nickel and 1.33% manganese within a mineralized area of 13 km 2 Physical Concentration of this ore yields 12 million tonnes with upgrades to O.72% Co, 0.90 % Ni and 3.71 % Mn Mada Inferred Resources: 145 million tonnes 0.21% Co, 0.48% Ni and 1.15% Mn within a mineralized area of 60 km 2 Five other deposits contain 264 km 2 of mineralized area

34. 34 PART I PART III NI-CO UPDATED RESOURCES & RESERVES MINING PROJECTS PART II PART IV Measured and Indicated resources increased 97% to 120.6 million tonnes, grading 0.23% cobalt, 0.65% nickel, and 1.34% manganese . Inferred resources increased 25% to 202.5 million tonnes, grading 0.20% cobalt, 0.59% nickel, and 1.20% manganese. The January 2008 estimate of Nkamouna's Proven and Probable reserves, at 54.7 million tonnes grading 0.25% cobalt, 0.69% nickel, and 1.33% manganese, was projected to support a 19-year mine life. The approximate doubling in Measured and Indicated resources suggests the potential to double this period.

35. 35 PART I PART III NI-CO : SOME FAVORABLE CARACTERISTICS MINING PROJECTS PART II PART IV Cameroon cobalt mineralization is higher grade and coarser size than all other known laterite deposits; Cobalt is upgraded nearly three-fold using low-cost washing and sizing similar to simple sand and gravel operations ; Shallow open pits only 16 meters deep enable low mining costs, concurrent backfill and reclamation; blasting not needed Recent test work indicates opportunity to utilize simpler leach chemistry and processing equipment

36. 36 PART I PART III MBALAM IRON ORE: RECENTS ACHIEVEMENTS MINING PROJECTS PART II PART IV The indicated resource of itabirite hematite is sufficient to provide beneficiation feed required for the proposed production of high quality Direct Reduction grade and blast furnace grade iron concentrate during the first 20 years of project operation. To enhance the high grade hematite, another RP (N°143) has been granted to CAM IRON SA/ SUNDANCES RESOURCES Ltd for further exploration activities. 20,000 metres budgeted in 2009/10 3 new drill rigs purchased; Transport and port scope

37. 37 PART I PART III MBALAM IRON ORE : RESOURCES & RESERVES MINING PROJECTS PART II PART IV Detailed –site investigations commenced; Framework Agreement signed with Government; Feasibility Study under review for Mining convention negotiations Environmental and Social Assessment report under Government review; Full funded Definitive Feasibility Study to be completed in 2010 -$90m capital raising; Deutsche Bank appointed as strategic partners and arrange project financing.

38. 38 PART I PART III MBALAM IRON ORE : RESOURCES & RESERVES MINING PROJECTS PART II PART IV Deposit0 Resource category Tonnage (Mt) Grade (%) Fe SiO 2 Al 2 O 3 P LOI Mbarga Indicated 168.7 60.5 9.5 2.1 0.08 1.4 Mbarga Inferred 10.4 57.5 13.0 2.7 0.06 1.6 Mbarga south Inferred 21.8 58.8 9.4 3.0 0.06 2.9 Metzimevin Inferred 14.2 61.8 10.3 3.6 0.09 1.8 Total- indicated & inferred resource 215.1 60.2 9.8 2.3 0.08 1.6

39. 39 PART I PART III BAUXITE : RESOURCES & RESRVES MINING PROJECTS PART II PART IV Exploration campaign was conducted between January 16th and May 25th 2009. 11 plateaus on Minim- Martap and 3 plateaus on Ngaoundal were drilled, and 11,358 samples were collected, prepared, and analyzed. Estimated Bauxite resources are around 550 Mt with potential for additional 100-200 Mt in the southern region of Minim- Martap deposit.

40. 40 PART I PART III BAUXITE : RESOURCES & RESRVES MINING PROJECTS PART II PART IV Total population in the project area is around 45,000, but none of them is living on the potential mining pits. The base line study covered the Exploration Permits area and a buffer zone of 10 km around their perimeters. It basically showed that the area is fully suitable for implementing mining operations, with no endangered or protected flora and fauna specie, nor any migratory path within. Air, water, and noise monitoring followed the same pattern.

41. 41 PART I PART III BAUXITE : RESOURCES & RESRVES MINING PROJECTS PART II PART IV Alumina refinery, planned to be established near the bauxite deposits, will have the capacity of 3 Mtpa of smelter grade alumina (SGA ). It will be built in two phases. Proven and robust technologies have been chosen in the process design, which is based on a typical low temperature digestion, given the gibbsitic nature of the bauxite. Process and operating parameters will be in the first quartile of the industry. The plant will be operated to adhere to the best safety, environment, and efficiency standards in the industry.

42. 42 PART I PART III URANIUM OF POLI: RESOURCES RESERVES MINING PROJECTS PART II PART IV Detailed mapping, ground radiometrics , trenching and sampling of the Salaki radiometric anomaly in the Salaki concession, 22 kilometres WSW of Kitongo . The work delineated a 500 metre long zone of elevated radiometric values of 100-12000cps in microdiorite , brecciated basic volcanics and volcaniclastic sediments along a major NW-trending fracture. Ten representative grab samples of the various lithologies in the prospect assayed in the range 324-8293ppm U 3 O 8 .

43. 43 PART I PART III URANIUM OF TEUBANG MINING PROJECTS PART II PART IV Mega conducted a detailed helicopter-borne magnetic-radiometric survey over the area, comprising 8900 line kilometres at a line spacing of 150 metres and flying height of 30 metres. The survey highlighted numerous radiometric anomalies and other areas of interest and ground follow up is planned to begin in may 2010. Distribution of the anomalies on the Teubang research permit

44. 44 PART I PART III URANIUM OF LOLODORF MINING PROJECTS PART II PART IV A detailed 7350 line kilometre helicopter-borne magnetic-radiometric survey over the entire Lolodorf property at 150 metres line spacing and flying height of 30 metres . The more prominent radiometric anomalies detected in the survey have been followed up by ground radiometric surveys, trenching and geochemical sampling. Several drilling targets have been identified, but drilling has been deferred due to budget constraints. Trenching to expose uranium mineralization in a prospect

45. 45 PART I PART III URANIUM OF BATOURI: RESOURCES & RESERVES MINING PROJECTS PART II PART IV 3.5km envelope of >250ppb Au in soils (2) Granite hosted quartz vein and stockwork deposit (4) Extensive artisanal pitting on coarse-gold bearing veins (4) >8,900m of diamond drilling completed, high grade results: 1m @ 132g/t (3) 6.8m @ 8.86g/t (5) , 1.5m @ 49g/t (3) , 1.5m @ 43g/t (2) & 2.67m @ 66g/t (2)

46. 46 PART I PART III YOKADOUMA DIAMOND(CTD): OPEN PIT MINING MINING PROJECTS PART II PART IV Open pit mines are used when deposits of minerals are found near the surface or along kimberlite pipes . This method is used when the "overburden," or surface material covering the deposit, is relatively thin and/or the minerals are imbedded in structurally unstable earth. In open cut mining, the ore shall be removed from deposits that crop out at the surface, lie on a hillside, or are covered by a shallow overburden that is stripped before or simultaneously with the removal of the ore.

47. 47 PART I PART III YOKADOUMA DIAMOND(CTD): OPEN PIT MINING MINING PROJECTS PART II PART IV ZONES DIMENSIONS OF THE CONGLOMERATE OUTCROPS (m ² ). TOTAL SURFACE AREA OF THE BLOCKS CONCERN (m ² ). MOBILONG >/=150.000 >/=11.934 LIMOKOALI/MOMIKOGUI and MOMETCHOBI >/=483.249 >/=10. 62 TOTOBI >/=1.75 >/=9. 888 NONPEDA/MPMALOUDOU and LINGUI >/=3. 564 >/=13. 469 TOTAL SURFACE AREA >/=9. 296 >/= 45. 911

48. 48 PART I PART III YOKADOUMA DIAMOND(CTD): OPEN PIT MINING MINING PROJECTS PART II PART IV The first step in developing exploitation is the removal of vegetative cover of trees and underbrush. Next, the overburden of topsoil and subsoil is removed and stockpiled for future reclamation. The ore is exploited in the preferred method to be applied. Considering the fact that the zone is located in a tropical dense forest area, a detail environmental study is planed to be carried out in the different target zones which include, Mobilong , Limokoali / Momikogui , Momitchobi , Totobi and Nonpeda areas . This shall be done following a well defined reference terms based on socio-economic, flora and fauna that is found in this zone.

49. PRESENTATION PLAN PART I PART II PART IV ECONOMIC IMPACT OF MINING PROJECTS 49 PART III

50. 50 PART I PART III ECONOMIC IMPACT OF MINING PROJECTS PART II PART IV MINING AND LOCAL DEVELOPMENT Building socio-economic infrastructures Construction of m ine roads and trails; Building schools and supporting education; Building and supporting health centers; Building cultural centers; Building clean water supply sources; Building rural power supply systems ; Facilitating access to new technologies. Béké Bridge before Béké Bridge built through artisanal mining financing Béké school before Face lift of the Béké school through artisanal mining benefits Health center built through artisanal mining financing

51. 51 PART I PART III PART II PART IV MINING AND INDUSTRY With its vision to become an emerging economy by 2035 Cameroon intends to manufacture at least 35% of its natural resources in order to establish a flourishing metallurgical industry. The FECONA project is aimed specifically at achieving this goal. ECONOMIC IMPACT OF MINING PROJECTS

52. 52 PART I PART III PART II PART IV EXPATRIATE TO CAMEROONIAN TRANSITION The training of unskilled and semiskilled employees will be carried out during construction and commissioning. The implementation team will also seek to include training positions in the construction contracts to maximise the participation of local people. As local personnel are trained to carry out the required duties, the expatriates overseeing or conducting those tasks will be replaced with Cameroonian employees. ECONOMIC IMPACT OF MINING PROJECTS

53. 53 PART I PART III PART II PART IV EXPATRIATE TO CAMEROONIAN TRANSITION First 10 Years Labour Split ( Mbalam Iron) ECONOMIC IMPACT OF MINING PROJECTS

54. 54 PART I PART III PART II PART IV EXPATRIATE TO CAMEROONIAN TRANSITION SOCIAL BENEFITS DURING CONSTRUCTION ( Mbalam Iron) Total investment during the project development phase will be around US$ 5 billion. A significant proportion of this will be spend directly in country on local labour, the use of local contractors and the procurement of local materials and services. Specific training and advice will be offered to the local business community, contractors and vendors to help them understand and comply with the standards required for involvement in the project development. The peak workforce during project construction will be around 12,000 to 14,000 people with substantial opportunities for local employment. Some US$ 150 million of costs has been embedded in the engineering design and construction standards to ensure minimum disruption and environmental conservation. It is proposed to invest around US$ 5 million on sustainable social and environmental projects within the local communities during the project development phase. ECONOMIC IMPACT OF MINING PROJECTS

55. 55 PART I PART III MINING SECTOR TO BOOST ECONOMIC DEVELOPMENT PART II PART IV EXPATRIATE TO CAMEROONIAN TRANSITION SOCIAL BENEFITS DURING OPERATIONS ( Mbalam Iron) The peak workforce during project operation will be around 1,400 people with over 95% of these ultimately being local nationals. Ongoing training programmes will be developed in collaboration with local tertiary education institutions. Some US $7 million per year has been allocated in the general operating budget for environmental and social training, performance and compliance monitoring. A commitment has been made to set aside 0.5% of total after tax profits annually to be spent on sustainable social and environmental projects within the local communities throughout the operations phase. Based on a 25 year mine life free cash flow (royalties, taxes, dividends etc.) to the host governments are expected to total around about US$ 20 billion.

56. 56 THANK YOU FOR YOUR KIND ATTENTION!