BY NDUMBE BELL JOSEPH GASTON IN DOUALA
According to reports the state is in the process of increasing the country’s gold reserves with the Central Bank.
About 778.04 Kilograms of fused gold (with other elements / substances) had to undergo a refining process to residue 500 24 carat gold ingots weighing 500.86 kilograms.
The result is the co-operation between the Ministry of Mines and the Ministry of Finance (and an enabling refining Company) empowered by decree of June 1, 2015 for the purposes of constituting state reserves.
The declaration was said to have been made by the Acting Minister of Mines Fuh Calistus Gentry who detailed that theSupport Framework for Mining Crafts (or Capam) was the unit that collected the amount of fused gold (above) on behalf of the state for refinement that produced the amount of gold ingots (above). Also obtained were some silver and copper alloys but it was not precise whether this was included in the total refined weight of the gold reserve. It is the National mines Company that has relaced Capam.
It was also explained that the occasion is anopportunity to demonstrate the policy laid down by the state that any active mining company involved in extracting gold within it’s territorial boundaries must revert a share to the state. This is according to the mining code said to have been launched in 2012. It is the public treasury that is responsible in receiving the mined returns from which they will be refined as ingots to meet the standards necessary to acquire the state’s gold reserve with the Central Bank (BEAC).
So, the Minister of Finance Louis Paul Motaze revived the gold project in June 13, 2013 and added a clause instituting a working group or committee responsible for the state’s strategic gold stock.
This group, Louis Paul Motaze stated in Octobre 3, was incharge of tele guiding the refining of material gold into monetary gold based on the internationally-reputed London Bullion Market, the global benchmark.
The importance of creating and increasing gold reserves should not be overemphasised due to the countless advantages. It is good in times of financial and economic instability and uncertainty or the lack of financial sustainability.
Central banks welcome gold reserves for promoting confidence in their currency. The yellow metal is also appreciated by investors in times of economic or financial turbulence. The Central bank says the reserves can be used during short-term financing needs.
Due to the offsets created and multiplied by the war in Ukraine, a study states that in 1922 Central banks globally rushed to buy gold worth 1,136 tonnes which has been estimated to be a record high since 1967.