Cameroon secures 640 kg of gold in 2024, to boost its strategic reserves

(Business in Cameroon) – During the year 2024, the National Mines Company (Sonamines) collected on behalf of the State of Cameroon, a volume of 640 kg of gold. The figure was revealed by the Prime Minister, Joseph Dion Nguté, during the presentation, on December 1, 2024 to the National Assembly, of the government’s economic, financial, social and cultural program for the 2025 budget year.

According to the head of the Cameroonian government, the cargo of gold thus collected, under the synthetic mining tax with discharge provided for by the Mining Code, represents a value of 25 billion FCFA. This raw metal, after the refining work, will make it possible to “ strengthen state gold reserves », According to the Prime Minister.

As a reminder, it was on October 3, 2023 in Yaoundé that the Cameroonian government delivered the results of the first operation to refine the stock of gold held by the Public Treasury, for the purposes of establishing state reserves. . “On the basis of the joint Minfi (Ministry of Finance) – Minmidt (Ministry of Mines) order of 1^is June 2015, Ex-Capam (Support framework for artisanal mining) channeled and collected on behalf of the State approximately 778.04 kg of fused gold. This stock was the subject of the refining operation to obtain 500 24-carat gold ingots, with a total mass of 500.86 kg, as well as silver and copper alloys.», Revealed during the ceremony the acting Minister of Mines, Fuh Calistus Gentry.

With this first stock of refined gold, as well as the refining of cargoes of raw gold recently collected, Cameroon is gaining momentum in the implementation of its Gold project, launched during 2012. This project, according to officials, has the main objectives of collecting from mining companies the share of gold going to the State; and to return it to the Public Treasury which will then be responsible for turning it into ingots meeting the standards required for the constitution of the country’s gold reserves with the central bank (BEAC).

Building up gold reserves has multiple advantages for governments and central banks. “In times of economic uncertainty or financial market volatility, the precious metal fully plays its protective role. Additionally, holding gold allows central banks to increase confidence in their currency and national economy. (…) As an uncorrelated asset, gold is even likely, in times of crisis, to increase in value. Thus, central banks, like many investors, choose the yellow metal as a hedge against currency erosion caused by rising prices. (…) Because the gold market is global, reserves of the precious metal can be used to meet short-term liquidity needs. Also, through its stability and the confidence placed in it, gold strengthens the credibility of central banks…», details the specialized platform www.goldinfo.fr.

BRM

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