Cameroon: Presidential Approval Delays Alumina Refinery Project

VENTURES AFRICA – The inability of India’s Hindalco, Dubai Aluminium Company (Dubal) and Hydromine Inc to secure mining permit has compelled both companies to delay the kick-off of their $4.3 billion Cameroon Alumina Ltd (CAL) joint venture, a company executive said on Friday.

Agreement for Cameroon Alumina Ltd (CAL) joint venture was signed in 2008. Under the joint ventureproject, a bauxite mining and alumina refinery will be built in Cameroon. However, three years on, the project has been suspended due to the non-availability of a mining permit.

On completion, the refinery will tap bauxite reserves at Minim- Martap and Ngaoundal deposits in the Adamawa region of northern Cameroon. While commenting on the delay, Joel Sinquin, Deputy General Manager of CAL told Reuters all is set apart from the permit.

“We are pushing negotiations with the government and our hope is to be granted the license as soon as possible, maybe before the end of this year or early next year. But once we obtain the mining license, it will take two years of a detailed study at the site and three years after to construct the refinery before mining of the bauxite begins,” Sinquin said.

According to the mining laws of Cameroon, President Paul Biya, must approve all mining projects.

On completion, the refinery, with a capacity of 1.4 to 3 million tonnes, would be Africa’s second alumina refinery; the first is in Ghana.