The Emergence of the Bauxite-Alumina-Aluminum Sector in Cameroon: A Strategic Alliance 2024
In a significant industrial move, Cameroon is witnessing the birth of its first bauxite-alumina-aluminum sector, thanks to the strategic alliance between Prometal and Alucam. This collaboration marks a pivotal moment for the country and the entire African continent, as it endeavours to establish a self-sufficient and integrated aluminium industry.
Prometal, a leading steel manufacturer, has embarked on an ambitious project to construct an integrated industrial steel complex in Kribi. The project aims to transform iron concentrate into billets for local and sub-regional steel mills, aligning with the Cameroonian government’s import-substitution plan for 2024-2026. This initiative is a testament to the country’s commitment to transitioning from a mining-centric economy to a robust industrial sector.
Alucam, on the other hand, has been a cornerstone of Cameroon’s aluminium industry. Despite facing financial challenges in the past, Alucam has shown resilience and adaptability. The company’s recent decision to raise aluminium prices by 8% reflects the global increase in alumina prices and additional transport costs due to the pandemic. This move is expected to bolster Alucam’s financial health and support its contribution to the new sector.
The collaboration between Prometal and Alucam is set to leverage the rich bauxite reserves in the Minim-Martap region, with the support of Eagle Eye Asset Holdings PTE Ltd. The interministerial working group’s technical examination has revealed a strong commitment to developing the bauxite-alumina-aluminium value chain within Cameroon. This development is a strategic step towards reducing reliance on imported materials and fostering economic growth.
The establishment of the bauxite-alumina-aluminum sector is a clear indication of Cameroon’s industrial evolution. It represents a forward-thinking approach to resource management and a drive towards sustainable economic development. The sector promises to create job opportunities, enhance local manufacturing capabilities, and position Cameroon as a key player in the global aluminium market.
As the project progresses, it will be crucial to monitor its impact on the local communities and the environment. Sustainable practices and corporate social responsibility will play a significant role in ensuring that the benefits of this industrial advancement are shared equitably.
The alliance between Prometal and Alucam is more than just an industrial merger; it is a beacon of hope for a continent eager to showcase its potential. Africa is poised to make its mark on the aluminium industry, and Cameroon is leading the charge with vision and vigour. The future looks bright for the bauxite-alumina-aluminum sector, and its success could pave the way for similar initiatives across the continent.
On August 13, 2024 in Yaoundé, under the chairmanship of Prime Minister Joseph Dion Ngute, Hayssam El Jammal, CEO of Prometal Groupe, signed an investment memorandum of understanding and a commercial contract with the State of Cameroon, represented by Fuh Calistus Gentry, Acting Minister of Mines, Industry and Technological Development (Minmidt), Luc Magloire Mbarga Atangana, Minister of Commerce, and Alain Malong, Managing Director (DG) of the Cameroonian Aluminum Company (Alucam). These legal instruments relate to the construction by Prometal Groupe, through its subsidiary Proalu SA, of an aluminum processing plant in the Bassa industrial zone in Douala.
According to Minister Fuh Calistus Gentry, the new investment of 88 billion CFA francs, which Prometal Group is preparing to make in the Douala-Bassa industrial zone, positions Cameroon as a pioneer in the structuring of an integrated bauxite-alumina-aluminum sector in Africa. This is especially true since the ministerial department in charge of the mining sector in Cameroon recently signed a mining agreement with Camalco for the exploitation of the Minim Martap bauxite deposit, located in the Adamaoua region. This means that thanks to this mining agreement which paves the way for an operating license, and to the partnership sealed on August 13, 2024 between Prometal Groupe and Alucam, Cameroon is already dreaming of the production of bauxite at Minim Martap, its transformation into alumina in accordance with the Mining Code which imposes the local transformation of 15% of the minerals extracted from the Cameroonian subsoil, then the transformation of alumina into aluminum by Alucam, and finally the transformation of the aluminum produced by Alucam in the Proalu SA plant, the start of work of which is announced for the beginning of 2025.
Indeed, according to the terms of the memorandums of understanding and contract signed on August 13, 2024 before the Prime Minister, Alucam undertakes to provide Proalu SA with 30,000 tons of aluminum ingots each year, thus enabling this state-owned company to secure an annual turnover of approximately 48 billion CFA francs from a single customer, we learned. “Which will inevitably make Proalu Alucam’s first customer, and we are proud of the impact of our partnership on the national economy, employment, the energy sector and the support of the State in its mission,” rejoices Hayssam El Jammal, CEO of Prometal Groupe. Alucam’s raw material will then enable the Proalu SA plant to produce 60,000 tonnes of coils per year (aluminium coil, pre-coated aluminium and steel coils, sandwich panels and other derived products), 2,000 tonnes of aluminium cables, and 6,000 tonnes of single and armoured copper cables. It should be noted that for the production of electrical cables, Proalu SA will import part of the raw material, as local production is insufficient.
Promotion of import substitution
While waiting for the delivery of the Proalu SA plant in the first quarter of 2027, the project already carries many hopes. For Luc Magloire Mbarga Atangana, the Minister of Commerce, this project is promising, in the sense that it makes it possible to anticipate the availability of sheet metal and electrical cables on the Cameroonian market. This will facilitate the construction of housing. In the same vein, the State, Alucam and Prometal Groupe see in this initiative the promotion of the import-substitution policy, the main goal of which is to consume local products, to the detriment of imports. “The supply of raw materials will be 100% on the local market, both for aluminum ingots and for scrap metal, copper and bronze. We must then resort to complementary imports, since local availability is not sufficient to meet all of the plant’s needs,” they say at Prometal Groupe.
Thanks to the supply of local raw materials, the Proalu plant, according to its promoters, will allow Cameroon to save 27 billion CFA francs in foreign currency each year, thus contributing to the reduction of the country’s trade deficit. These savings will be made in particular on imports of electric cables, which have so far cost the country 19 billion CFA francs each year, compared to 8 billion CFA francs for imports of coils. Thanks to the creation of 1,450 jobs (1,000 indirect and 450 direct), the Proalu project will contribute to the fight against unemployment, a real social scourge in Cameroon. In addition, the project will benefit local energy producers such as the electrician Eneo and Gaz du Cameroun. Indeed, we learned that the construction of the Prometal Groupe aluminum processing plant involves the subscription of 15 MW of electrical power and the consumption of 800,000 m3 of natural gas each year
