Cameroon has made extractive resources one of the levers of growth needed to achieve its vision of becoming an emerging country by 2035. To this end, it has made China, the world’s second largest economy, one of its preferred partners in the exploitation of natural resources. This partnership is actively perceptible in the exploitation of hydrocarbons and mining. A glance at the semi-mechanized artisanal mining activity in Cameroon also shows that the sector is highly prized by companies from the Middle Kingdom. The case of Kribi iron ore, for which the SINOSTEELCAM S.A. group holds an exploration permit, and the interest shown in nickel and cobalt mining in Lomié are illustrative cases in point. In addition, when one surveys the remote areas of the Eastern and Adamaoua regions, several Chinese companies are present and active in gold, diamond and other mineral mining.
For Chinese overseas investment, an official guideline has been defined by the Chinese state with the aim of regulating Chinese investment and mining operations. These guidelines on Chinese overseas investment, developed by the China Chamber of Commerce of Metals, Minerals and Chemicals (CCCMC), should apply in the host territory, notably Cameroon. These are specifically those published by the industry association to promote the sustainable development of investment and trade operations by the Chinese mining industry. In view of practice in the field, one is tempted to ask the question, whether these guidelines are always respected by these companies.
According to the guidelines, investments and operations should comply on the one hand with the laws and regulations applicable in China and the host countries, and on the other with minimum mining industry standards. In other words, Chinese companies are required to comply with regulations in force in both China and Cameroon. As a reminder, la Loi N°2016/017 du 14 décembre 2016 portant Code minier du Cameroun, constitue la base légale ou normative en vigueur, pour la pratique de l’activité minière au Cameroun. As the said code has integrated international governance initiatives such as the EITI and the Kimberley Process Certification Scheme, Chinese companies are also required to comply with these minimum standards.
One of the important points raised by the Chinese mining investment guidelines is the adherence to ethical business practices, in particular, those according to which ” Companies should implement and maintain ethical business practices and corporate governance systems, eliminate all forms of corruption, adhere to fair operating practices, assess all operations with regard to their impact on sustainable development and ensure that all operations contribute to economic, environmental and social progress “.
Yet local communities in the East and Adamaoua regions are paying the price for their proximity to Chinese companies’ mining operations in the form of rising prostitution, rampant under-education, sexually transmitted diseases, deplorable working conditions and the resulting workplace accidents. Local populations are living in extreme poverty. Several newspapers report on a daily basis, noting problems of compensation.
Ultimately, these and other internationally prescribed guidelines and internal standards remain difficult for Chinese companies to comply with in Cameroon. Yet when they operate in developed countries, they scrupulously respect the laws and regulations of their host countries. This raises questions about the state of governance in developing countries, and particularly in Cameroon.
By Prosper KOUAYEP
