Cameroun’s mining sector in turmoil over suspended gold trading licenses

The Cameroonian artisanal mining sector is facing unprecedented challenges. The National Mining Company (SONAMINES), the state entity responsible for gold and diamond marketing, has frozen the issuance and renewal of licenses for purchasing offices. This abrupt halt has ignited tensions within the industry and sparked strong reactions from the National Union of Diamond, Gold, and Artisanal Miners’ Purchasing Offices (SYNAPROBADIOCAM).

At the helm of the union, Ousmanou Aladji Hamadou is urgently calling for the resumption of administrative procedures. He warns that nearly 200 purchasing offices are now unable to operate legally due to the lack of valid licenses. This regulatory void, he argues, is inadvertently fueling illicit trade networks for precious metals extracted across Cameroon.

The administrative freeze and its unintended consequences

SONAMINES implemented the suspension with the aim of tightening oversight on a historically unregulated artisanal sector. However, the outcome on the ground tells a different story. Without official channels, gold produced by artisanal miners is slipping across borders through informal routes, slipping through both fiscal and production reporting systems.

The union estimates that several hundred operators—both established offices and new entrants—are affected. These professionals, denied legal market access, are either forced into inaction or pushed toward shadowy trade channels. While the exact financial loss to the Cameroonian Treasury remains unclear, the erosion of traceability systems is already undermining Yaoundé’s efforts to strengthen oversight in the sector.

Cameroon is not alone in this struggle. Several Central African nations, from the Congo to the Central African Republic, are grappling with similar challenges in regulating artisanal gold flows into formal markets. Cross-border smuggling, driven by tax disparities and regulatory loopholes, continues to siphon off a significant share of regional production.

SONAMINES under fire for its licensing freeze

Established to streamline mineral governance and centralize the commercialization of gold and diamonds, SONAMINES plays a pivotal role in the country’s mining ecosystem. Its mandate includes ensuring state preemption rights over precious metals while structuring partnerships with private purchasing entities. Yet, the agency now finds itself at the center of criticism following its decision to suspend licenses.

Union representatives argue the freeze is counterproductive on two fronts. It strips operators of their livelihoods while leaving artisanal miners in the East, Adamawa, and Northern regions—who rely on these offices to sell their output—without viable alternatives. With no official outlets, miners increasingly turn to informal buyers, often foreign, who export the resource without contributing to Cameroon’s fiscal coffers.

Balancing formalization with operational reality

SYNAPROBADIOCAM is pushing for structured dialogue with mining authorities and SONAMINES. The union’s primary demands include the resumption of license issuance under a transparent framework and the establishment of controls that do not stifle legitimate businesses. It emphasizes the economic rationale, noting that formalizing 200 purchasing offices would create new fiscal collection points and enhance traceability across the supply chain.

The stakes extend beyond corporate interests. They touch on Cameroon’s broader strategy to diversify its extractive economy, long dominated by hydrocarbons. Properly regulated artisanal gold could emerge as a key revenue driver for the state and a source of rural employment if managed effectively.

The path forward remains uncertain. Will SONAMINES lift the freeze under revised conditions, or will it impose stricter licensing criteria? Either way, the credibility of the national commercialization system hinges on the government’s ability to reconcile regulatory rigor with operational efficiency. Discussions between the union and oversight authorities are underway, with both sides seeking a sustainable resolution.