Understanding How Precious Metals Insurance is Calculated in Cameroon

By the Ministry of Mines, Industry and Technological Development – Cameroon

Whether you’re an international buyer, licensed exporter, or local trader of gold, diamonds, or other precious metals in Cameroon, one critical aspect of your transaction is insurance.

This blog post will help you understand how insurance premiums are calculated, why it’s necessary, and how it directly relates to the quantity and value of the metal you’re purchasing.

✅ Why Insurance is Mandatory

Precious metals are high-value commodities. To ensure the safe and secure transport—especially during export or transit from mines to vaults—Cameroonian law and international protocols require that shipments be fully insured.

Insurance protects against:

Theft or loss during transport
Natural disasters or damage
Delays in international shipment
Handling errors

📊 How Insurance is Calculated in Cameroon

The insurance cost is primarily calculated based on two key factors:

Quantity & Type of Metal: The more you purchase, the higher the coverage required. Different metals (e.g., gold vs. diamonds) have different unit values.
Declared Value per Kilogram or Carat: Insurance is calculated as a percentage of the total declared value.

🧮 Basic Formula:

Insurance Premium = Declared Value × Insurance Rate (%)

The standard insurance rate in Cameroon ranges between 0.8% to 1.5% of the declared value, depending on volume, risk level, and destination.

📌 Example Calculation Chart

Metal Quantity Unit Price (USD) Declared Value Insurance Rate (%) Premium (USD)

Gold 10 kg $65,000/kg $650,000 1% $6,500
Diamonds 500 carats $1,200/carat $600,000 1.2% $7,200
Gold 50 kg $65,000/kg $3,250,000 0.9% $29,250
Coltan 2 tons $100,000/ton $200,000 1.5% $3,000

📎 Who Pays the Insurance?

Buyers typically cover the insurance premium before the export process begins.

The premium is often paid directly to an authorized insurance agent or through the exporter, who arranges shipment.

All insurance payments are receipted and regulated by the Cameroon Ministry of Mines and affiliated institutions.

🛡️ Important Reminders

Only licensed exporters and insurance partners recognized by the government can provide this service.

Ensure you verify documents for authenticity (insurance certificate, export license, etc.).

Always factor in insurance costs when budgeting for precious metal purchases.

📞 Need Help or Guidance?

For more information, or to be connected with licensed agents and verified exporters, contact us at:

Ministry of Mines, Industry and Technological Development
📍 Yaoundé, Cameroon
📧 [email protected]
📞 +237 221 521 660
🌐 https://minmitd.com/

Understanding insurance is crucial to conducting a secure and lawful transaction. We at the Ministry of Mines are committed to making the Cameroonian mining sector transparent, safe, and attractive for investors and buyers worldwide.

We protect your gold, your diamonds—and your investment.