Cameroon’s Mining Law Reform: Seven Legal Pitfalls Investors Must Avoid in 2025

The enactment of Law No. 2023/014 of December 19, 2023, which establishes a new Mining Code in Cameroon, marks a significant milestone in the governance of the country’s natural resources. This legislative reform aims to balance sectoral attractiveness, national interests, and sustainable development.

However, the changes introduced by the new Mining Code—and by its regulatory decrees issued in 2024—require heightened legal vigilance from all stakeholders in the extractive industry. In this new legal environment, both domestic and foreign investors must fully understand the implications of the reform, adjust their legal and organizational structures accordingly, and anticipate any compliance risks.

Banga Assam H. E. & Associates outlines here the seven major legal errors that mining sector operators must avoid in light of the latest legislative and regulatory developments.

1. Overlooking SONAMINES’ Central Role in the Marketing Chain

The new Mining Code significantly expands the mandate of the National Mining Company (SONAMINES) by granting it exclusive authority over the marketing of certain mineral resources, including gold and diamonds. This monopoly means that operators are now required to transact through approved channels or directly with SONAMINES for the sale or export of these resources.

Common mistake: Entering into direct agreements with third parties outside of the authorized framework exposes operators to administrative sanctions and potential revocation of their permits.

Our recommendation: Investors must review their commercial contracts, revise existing partnerships, and, where necessary, formalize specific agreements with SONAMINES. Failure to comply may result in contract nullity and criminal liability.

2. Underestimating the Legal Scope of Strategic Mineral Classification

The Code introduces a new category of resources: “strategic mineral substances,” which are subject to a special legal regime. The exploration, exploitation, transfer, or sale of rights related to these substances now requires specific government authorization, which may be denied on grounds such as national security or environmental protection.

Common mistake: Engaging in exploration or prospecting activities in areas containing strategic minerals without first verifying their legal status.

Our recommendation: A thorough legal and geological audit is essential prior to any permit application. Investors must also stay informed of updates to the list of classified strategic substances.

3. Improper Legal Structuring of Mining Companies

In line with its policy of strategic control over extractive resources, the Cameroonian legislature has tightened rules governing corporate ownership structures. The State now enjoys a pre-emptive right over any transfer of shares in mining companies. In some cases, minimum local participation requirements also apply.

Common mistake: Establishing legal entities with corporate governance or transfer clauses that are inconsistent with the new law.

Our recommendation: Legal structuring must begin with a full compliance analysis. This includes reviewing the company’s articles of association, shareholders’ agreements, and any investment protocols in place.

4. Ignoring the Specific Accounting and Tax Requirements of the Mining Sector

The new Code mandates that mining companies must maintain accounting records in accordance with the OHADA Uniform Accounting System (SYSCOHADA). These records must detail mineral flows, capital expenditures, depreciation, and taxes—including royalties, surface taxes, and production shares owed to the State.

Common mistake: Managing financial records using general-purpose accounting practices that fail to meet mining-specific standards.

Our recommendation: Implement a tailored mining-sector accounting system, validated by both legal and accounting experts, to ensure compliance and mitigate audit or tax risks.

5. Continuing Artisanal or Semi-Mechanized Operations Without Legal Regularization

The Code redefines the regulatory frameworks applicable to artisanal mining—now under the jurisdiction of local governments—and reclassifies certain semi-mechanized operations as industrial ones. This reclassification entails new obligations related to environmental standards, taxation, and operational safety.

Common mistake: Operating under outdated or inadequate permits in light of the reformed legal framework.

Our recommendation: Investors must regularize their activities, including obtaining updated permits from the relevant local or national authorities. Failure to do so may result in permit suspension or revocation.

6. Neglecting New Traceability and Environmental Compliance Obligations

The 2024 implementation decrees impose strict traceability requirements for mineral flows, including the use of authorized trading posts and the maintenance of detailed sales registers. At the same time, environmental compliance obligations have been strengthened: mandatory mine blast reporting, reinforced environmental impact assessments, and mandatory site rehabilitation plans.

Common mistake: Operating without the required environmental documentation or traceability mechanisms.

Our recommendation: Companies should develop a comprehensive environmental compliance plan that includes internal protocols, impact reports, and compliance checklists, all under legal supervision.

7. Waiting for Disputes to Arise Before Seeking Legal Counsel

Given the growing complexity of mining regulations and the range of sanctions available (civil, administrative, and criminal), legal risk prevention is now indispensable. In 2025, many companies may face penalties simply for failing to anticipate regulatory changes or contractual adjustments.

Common mistake: Consulting a lawyer only after a conflict has emerged or a permit has been suspended.

Our recommendation: Establish ongoing legal support from the earliest stages of your project—from permit acquisition to active mining—covering contract drafting, regulatory monitoring, and government liaison.

Cameroon’s new Mining Code represents a strategic opportunity for investors willing to operate within a more structured and transparent framework. However, capitalizing on this opportunity requires immediate adaptation to the new legal landscape—both in terms of governance and risk management.

Banga Assam H. E. & Associates, with its deep expertise in the mining and natural resources sector, offers tailored legal support to mining companies, foreign investors, financial institutions, and public actors.

We provide comprehensive services in:

• Mining company structuring and compliance

• Permit negotiation and contract review

• Legal audits and due diligence

• Litigation and dispute resolution in mining law

Contact us today for a confidential consultation and expert guidance on your mining project in Cameroon.