BMI View: With a relative abundance of high grade mineral resources, Cameroon boasts attractive miningpotential. Foreign investment has picked up over the past five years, but the collapse in metals pricesslowed the progress of a number of big iron ore and bauxite projects. These projects will come online in thecoming years, and Cameroon will play an increasingly important role in African iron ore production overthe medium term. Government support to the sector and a solid pipeline of infrastructure investment willalso help the development of mining production.
Latest Developments & Structural Trends
Cameroon will play an increasingly important role in African iron ore production over the medium termas the Central African country begins to develop its abundant mineral reserves. The country will enjoyhigh-grade reserves, strong government support and a solid pipeline of infrastructure investment over thecoming years. At present, Africa produces 2% of global iron ore output, but is estimated to hold 20% ofglobal reserves.
However, the development of Cameroon's iron ore sector will continue to advance at a slow pace in 2017,amid funding issues due to low prices and delays to infrastructure projects. Iron ore prices have bottomedand recorded strong performance in 2016 but eased significantly so far in 2017. We expect prices toremain weak in 2017 and head even lower in 2018 as Chinese demand will be more subdued goingforward.