The mining industry in Senegal, a growing sector that significantly contributes to the country’s economy, is driven by its rich deposits of gold, phosphates, heavy mineral sands (zircon and titanium) and other resources like iron ore. Governed by the Mining Code, the sector provides legal certainty for investors through clear provisions for environmental and community obligations. It leverages environmental impact assessments and development funds to contribute to the progress of local communities located in the areas where mining companies operate.

The principal actors in the mining industry are the state, operating through the administration of mines, and Senegalese mining companies. However, artisanal and small-scale mining is widespread, especially for gold, presenting both opportunities and challenges related to governance and environmental sustainability.

Senegal’s legal system is based on civil law, inherited from the French model. Senegal is also a member of the Organization for the Harmonization of Business Law in Africa (Organisation pour l’Harmonisation en Afrique du Droit des Affaires (OHADA)) and the West African Economic and Monetary Union (WAEMU), which ensures uniformity of the rules applicable in commercial matters with other African member countries. The main sources of mining legislation follow.

The community regulations governing the mining sector are:

• Regulation No 18/2003/CM/UEMOA of 23 December 2003 on the WAEMU Mining Code (the “WAEMU regulation”) – this covers all operations related to the exploration, extraction, procession and marketing of mineral substances across the whole territory of the Union; and

• the Economic Community of West African States (ECOWAS), through its Model Law on Mining and Mineral Resources Development and Directive C/DIR 3/05/09 on the harmonisation of guidelines and policies in the mining sector.

Local legislation governing the mining sector includes the following.

• Law No 2016 – 32 of 8 November 2016 on mining (the “Mining Code”): The Mining Code is the main legal instrument governing the exploration, exploitation and management of mineral resources in Senegal, setting out licensing procedures, environmental requirements, fiscal and royalty obligations, and the rights and responsibilities of stakeholders. The Code also includes provisions for state participation and community development to ensure the equitable distribution of resources.

• Law 2023 – 15 of 2 August 2023 on the environment (the “Environmental Code”): The Environmental Code regulates environmental management and sustainability in mining operations, requiring mining companies to conduct environmental impact assessments before starting operations and to comply with measures to prevent environmental degradation.

• Decree No 2017 – 459, setting out the terms and conditions for implementing the Mining Code (the “Decree”): The Decree governs the application of the Mining Code and regulates, among other things, mining research, mining titles and production-sharing agreements.

Following the provisions set by Article 3 of the Mining Code, mineral resources are the property of the nation. This implies that all the minerals in the soil, subsoil, territorial waters and continental shelf of Senegal belong to the state. However, companies who have been given the right to mine (through mining titles) can claim ownership of the minerals they extract, as long as they adhere to the terms of their licence and follow the relevant laws. This provision was made to allow the state to keep an eye on natural resources while letting private companies make a profit from the minerals they are allowed to extract (Article 3 of the Mining Code).

Role of the State in the Mining Sector

In Senegal, the state primarily acts as a grantor-regulator rather than an owner-operator in the mining sector. Under the Mining Code, the government – through its ministries – is responsible for granting exploration and exploitation permits and monitoring compliance with mining laws, environmental standards and social obligations. It ensures that mineral resources are developed responsibly while safeguarding public and environmental interests. The state maintains ownership of all mineral resources, as per Article 3 of the Mining Code, but delegates their exploitation to private entities through permits and licences.

Mandatory National or Government Joint Venture, Contracting or Participation

The Mining Code includes provisions for state participation in mining operations. Article 31 allows the state to hold a minimum free equity interest of 10% in mining companies, with the option to negotiate additional stakes up to 25% against a financial reward and on the usual legal terms in place. In this way, the government directly benefits from mining revenues while leaving operational control largely in the hands of private investors.

Furthermore, a mining agreement should be contracted between the state and the investor prior to the issuance of the permit. It sets out the rights and liabilities of the state and the holder of the permit. The mining agreement is valid for 12 years, renewable once for further periods of validity not exceeding ten years.

Constitutional Basis and Sources of Mineral Rights

Mineral rights in Senegal derive from constitutional principles, local laws and regulations from WAEMU. Amended Law No 2001-03, dated 22 January 2001 and establishing the Constitution of Senegal (the “Constitution”), states in its Article 25-1 that natural resources belong to the people of Senegal. They must be managed and exploited transparently and legally to guarantee future generations’ rights. Furthermore, the state is committed, together with the local authorities, to ensure the preservation of land assets. In this regard, it is the source of more specific laws, like the Mining Code, designed to regulate the mining industry. For example, the Mining Code requires all mining activities to have a mining title from the government.

With that said, while mining projects may be governed by contracts (eg, mining conventions), these contracts are subordinate to the Mining Code and do not override the state’s ownership of the minerals.

Mineral Rights Status

Under the Senegalese Mining Code, the mineral rights given by a mining title are considered as immovable property held by a mining company and registered in the land register at the request of the Ministry of Mines.

In Senegal, mineral rights are granted by the government through the Ministry of Mines.

In Senegal, security of tenure for mining rights is well-regulated under the Mining Code.

Term Length and Renewals

Exploration permits are granted for a maximum of four years, with the possibility of two renewals of three years each, making the total possible duration ten years. A single legal entity cannot hold more than two exploration permits for the same substance.

Regarding the exploitation permits granted for mining activities, they are valid for a period up to 20 years and renewable for successive periods until the deposit is exhausted. These durations ensure that companies have sufficient time to explore and develop mineral resources. The granting of a mining permit leads to the withdrawal of the exploration permit within the mining perimeter.

Right to Progress From Exploration to Mining

The Mining Code guarantees the holder of an exploration permit a priority right to obtain an exploitation permit over the area covered by their exploration activities. This will guarantee a smooth transition from exploration to mining, provided all legal and technical conditions are met.

Maintenance Requirements

To maintain their rights, permit holders must comply with obligations such as paying annual surface rents and mining fees, submitting regular activity reports and commencement of work within legal deadlines. Failure to fulfil these obligations may result in fines or the suspension or cancellation of permits.

Cancellation and Revocation Procedures

Mining rights can only be cancelled for specific reasons, such as non-compliance with legal obligations, failure to meet financial commitments or environmental violations. The state must follow a formal procedure, including issuing a notice to rectify the violation and hearing the permit holder before revoking the rights.

Operating Control and Marketing

Permit holders retain control over mining operations but must comply with regulatory frameworks governing safety, environmental protection, and labour conditions. The marketing of extracted minerals is generally unrestricted, although operators must adhere to export rules and report their sales to the authorities.

Transferability

Mining rights are transferable, subject to prior approval from the Ministry of Mines. The Mining Code provides for the procedure, the information required from both parties and all the documents relating to the purpose of the transaction needed to carry out the transfer.

In the event that the holder of the mining title waives its exploitation permit, or at the expiry of the exploration permit without any request for renewal from the permit holder, full ownership of the rights as well as the quarry will be transferred to the state.

However, renunciation does not release permit holders from the obligations resulting from activities undertaken prior to the effective date of renunciation.

Environmental Laws and Regulations

The Environmental Code provides an in-depth description of features such as strategic environmental assessments, initial environmental analyses and mandatory environmental and social impact assessments.

An environmental impact assessment is a pre-condition for any development project that is likely to harm the environment, and mining projects are no exception. Consequently, projects are classified into two categories based on their environmental impact:

• high-risk projects require comprehensive environmental and social impact assessments; and
• moderate-risk projects undergo initial environmental analyses.

The foregoing process emphasises public participation at all stages, ensuring community involvement and transparency. Approved projects receive renewable environmental compliance certificates that are valid for five years, with periodic environmental audits to ensure ongoing compliance.

Protected Areas

Protected areas in Senegal are areas where exploitations are subject to rules designed to preserve their quality. To ensure a balance between resource extraction and the protection of critical public assets and interests, the Mining Code establishes the possibility for the Ministry of Mines to designate protected areas where mining activities such as prospecting, exploration and exploitation are strictly prohibited. Additionally, protected areas may be created wherever deemed necessary by the Ministry, such as for preserving ecological integrity, public safety or cultural heritage.

While this safeguards critical assets and promotes sustainable development, it also restricts mining companies’ access to certain reserves, potentially reducing their operational scope and profitability. The requirement to avoid said areas increases the need for careful project planning and environmental assessments, which can lead to higher compliance costs and operational adjustments.

The Ministry of Mines in Senegal addresses community relations in relation to mining projects by mandating public consultations and community involvement throughout the project life cycle, as required by the Mining Code and the Environmental Code.

On the one hand, mining companies must conduct environmental and social impact assessments, which include consultations with affected communities to ensure their concerns are addressed.

On the other hand, mining companies are specifically required to contribute to the development of local communities through mechanisms like a local development fund (fonds de développement local), funded by mining revenues to support community projects and considering the opinion of local communities and authorities. Additionally, to avoid any potential issue between the community and the mining operators, the Mining Code requires the latter to prioritise Senegalese workers and to promote equal employment opportunities.

Informed consultations are required when the investor wants an authorisation to open a public/private quarry, or for artisanal mining exploitation. The responsibility for carrying out these consultations with the relevant authorities and local communities lies with the Ministry of Mines.

Senegal does not recognise indigenous or traditional people. Under its Constitution, there are no statutes or privileges relating to place of birth, person or family.

The Senegalese Mining Code provides for the establishment of a local development fund to ensure that mining projects contribute directly to the socio-economic development of affected communities. Mining companies are required to contribute 0.5% of their turnover to this fund, excluding taxes. The local development fund is used to finance projects that benefit the community and promote sustainable development in mining areas.

The management of the fund is overseen by local authorities and representatives of the affected communities to ensure that it meets their specific needs and priorities.

Following the rebranding of Caisse Nationale de Credit Agricole du Senegal (CNCAS) to La Banque Agricole (the Agricultural Bank), an environmental, social and governance (ESG) policy was adopted in February 2018 and updated in December 2019. The policy is designed to promote sustainable banking activities by seeking to protect the environment and people from the potential negative impacts of financing. The bank encourages borrowers/clients and partners to comply with the safeguard standards of the ESG policy during the preparation and execution of projects and financed activities.

The bank’s ESG policy is periodically reviewed with a view to ensuring continued applicability to the bank’s activities.

Illegal Mining

Illegal mining is a major problem in Senegal. It generally occurs in artisanal and small-scale operations and overlaps with concessions held by industrial operators, leading to operational conflicts and loss of resources. Furthermore, illegal mining causes environmental degradation, soil erosion and water pollution via chemical agents, making it difficult for industrial companies to comply with the strict environmental standards set by the laws.

The Senegalese government has reacted by setting strong penalties for those who practise illegal mining. In this regard, the Mining Code states that whoever carries out exploration or exploitation of a mine or quarry without authorisation will be punished by imprisonment for a term of up to five years and a fine of up to F.CFA125,000,000 (approximately USD200,000). Illegally extracted mineral substances will be seized by the competent legal authority and confiscated for the benefit of the state or the holder of the mining or quarrying title concerned.

Regarding mining companies, they have reacted by focusing on community involvement, raising awareness among local populations of the negative impacts of illegal mining and offering economic alternatives. For example, co-operation initiatives with local authorities are helping to formalise artisanal mining, while establishing buffer zones to protect their concessions.

Good Example of Community Relations/Consultation

In Senegal, both positive and negative examples of environmental and community relations in mining projects have emerged. An example of effective community engagement in line with the requirements of the Mining Code is when companies work closely with local stakeholders, ensuring transparent consultations and addressing concerns about environmental impacts. Mining companies that provide community jobs or infrastructure as part of their project planning can build trust and support. These efforts are often part of environmental and social management systems, where companies actively involve the community in environmental monitoring and promote mutual benefits.

Bad Example of Community Relations/Consultation

Some mining projects in Senegal have been the subject of criticism for insufficient consultation and lack of transparency, which has led to tensions with local communities. In such cases, failure to address concerns about water contamination, land rights or employment opportunities has resulted in social issues and conflicts. Some mining companies have been slow to respond to complaints, which has caused further difficulties. The Mining Code and Environmental Code requires that consultation processes are in place and that the voices of impacted communities are heard, but challenges remain in ensuring these are genuinely participatory and not just a formality.

The transparency framework developed by the Senegalese authorities is in progress. To make the national measurement reporting and verification (MRV) system effective, the government has established an online training programme for government officials and relevant stakeholders on the use of the MRV system.

There is currently no specific legislation relating to climate change or global warming in Senegal. The outstanding laws are the environmental provisions set out in the Mining Code.

There are currently no sustainable development initiatives related to climate change or global warming in Senegal. The outstanding laws are those mentioned in the foregoing.

There are no governmental or legislative initiatives regarding the increasing demand for so-called energy-transition minerals in Senegal.

The tax system for exploration and mining in Senegal is strictly regulated. With this said, fixed fees are generally due upon the granting or renewal of a mining title. Since 2016, the issuance and renewal of a mining exploitation permit in Senegal have been subject to a fixed fee of F.CFA10 million.

On another note, the surface royalty is based on the size of the mining area. In this regard, the holder of a mining permit in Senegal is required to pay an annual surface royalty of F.CFA250,000 per square kilometre.

Additionally, there is a mining royalty that is applied to the value of the extracted mineral, with rates varying depending on the type of mineral. For example, for gold, the royalty rate is 5% of the market value, which is reduced to 3.5% if the gold is refined in Senegal.

It is also noteworthy that the current Tax Code in Senegal does not differentiate between national taxes and those specifically targeting foreign investors. Mining companies operating in Senegal are subject to the standard corporate income tax rate, which has been set at 30% since 2013.

According to the explanatory note of the 2016 Mining Code, the incentive approach of the 2003 Code was characterised by a broad range of exemptions. This situation did not promote an equitable distribution of revenues between the investor and the state. Therefore, the adoption of the new Mining Code marked the culmination of the fiscal reform process in Senegal’s mining sector.

Regarding tax stabilisation agreements, the relevant laws in Senegal allow the inclusion of stability clauses, which provide guarantees to investors against potential increases in tax burdens. The Senegalese state has committed to ensuring that the taxation applicable to a mining project will remain fixed and consistent with the terms agreed upon at the time of signing the mining convention or granting the exploitation permit. It is important to note that the conditions and duration of such stability are determined within the mining convention itself.

On another note, it should be noted that bilateral double tax treaties can limit taxation. However, it turns out that there is also the provision for denunciation of a tax treaty, where the source state can choose to denounce such treaty. For example, according to the Senegalese government, the country lost USD257 million over 17 years as a result of the tax treaty signed with Mauritius. If the other state party to the treaty refuses to amend or replace it with a new one, the source state may be forced to denounce it unilaterally.

The General Tax Code provides for a 5% registration fee for the transfer of mining titles, calculated based on the value of the transaction, to ensure appropriate taxation and regulate the transfer of mining rights. This registration fee is applicable for transfer through corporate structures outside of Senegal.

As a country endowed with significant mineral resources, Senegal is actively working to promote its mining sector both nationally and regionally. In line with this vision, the government aims to position the mining industry as one of the key drivers of the country’s economic growth through an initiative called the “Regional Mining Hub”. This project, part of Plan Sénégal Emergent (PSE) for the period 2024–28, seeks to establish Senegal as a leading mining service centre in West Africa.

To achieve this, Senegal is committed to implementing a strategic framework designed to make the mining sector more attractive to investors. Alongside the Regional Mining Hub initiative, the government is also advancing several flagship projects, including:

• the effective exploitation of the Falémé iron ore deposit;
• the acceleration of gold and zircon production;
• the development of the phosphate and fertiliser industries; and
• the regulation and promotion of artisanal mining activities.

Senegal offers a wealth of mineral resources within its subsoil, including:

• precious metals (gold and platinum group metals);
• base metals (iron, copper, chrome, nickel);
• industrial minerals (phosphates, industrial limestone, salts, etc);
• heavy minerals (zircon, titanium, etc); and
• ornamental stones and construction materials.

This robust mineral wealth underlines Senegal’s ambitious efforts to solidify its position as a regional leader in the mining industry.

Senegal has created an investment-friendly climate through a legislative and regulatory framework that is transparent, flexible, competitive and non-discriminatory. This is the only way in which the Senegalese government has been able to attract both domestic and foreign investors.

As it stands, Senegal has a wealth of mining potential, most of which is underexploited. To enhance the value of its mineral resources, the Senegalese government has introduced a mining policy aimed at improving the return on extractive activities, so that investors will invest more in the country. As such, this constitutes a measure that encourages foreign mining investment.

Since Senegal is a member of WAEMU, investors, particularly those holding mining permits, must comply with Central Bank of West African States (Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO)) requirements, in particular the foreign exchange regulations set out in Regulation No 09/2010/CM/UEMOA dated 1 October 2010 on external financial relations and its instructions. To this end, all foreign exchange transactions as well as capital movements – ie, transfers and/or receipts of funds and settlements of any kind with foreign countries, must be carried out through the BCEAO, the administration or a post office; an approved intermediary; or a manual foreign exchange agent.

Senegal is a party to all major United Nations human rights instruments, including the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR) and the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW). At the regional level, Senegal is a member of the African Union (AU) and ECOWAS. It is also a signatory to the African Charter on Human and Peoples’ Rights (the “African Charter”).

However, given that any holder of a mining licence or concession is required to sign a comprehensive mining agreement with the state – defining the relationship between the titleholder and the government as well as the general conditions for mineral prospecting or exploitation – the establishment of bilateral or multilateral treaties in the mining sector is also a primary focus of the Senegalese government, given the numerous treaties that they have already signed.

The Senegalese government has implemented a strategy for local participation to maximise the involvement of the population (ie, the people, who are the rightful owners of natural resources according to Article 25.1 of the Senegalese Constitution, which states that “natural resources belong to the people and are used to improve their living conditions”) in the management of mining activities through local financing. Specifically, local participation is defined as “the level of contribution made by Senegalese citizens in the implementation of projects, measured in terms of capital, labor, acquired technology, or goods and equipment provided or sold”.

Additionally, the Senegalese government is actively involved in the industrialisation strategy for the period 2021–35, which aligns with the National Strategy for the Development of Local Content (SNDCL) for the mining sector. The purpose of this strategy is to monitor and mobilise funding for major projects impacting the mining sector, in order to regulate the competitiveness of regions, particularly industrial platforms.

On another note, financial support is also available from funders such as the African Development Bank.

However, it is worth noting that accessing finance in Senegal presents some challenges, particularly the limited impact of guarantee funds on the financing of small and medium enterprises (petites et moyenne enterprises (PME)).

The authority regulating the securities in exploration financing is not yet established in Senegal. However, tax regulations are in place. Income derived from securities is subject to withholding tax in Senegal, with the rate varying depending on the nature of the income. Specifically, dividends from shares, partnership interests and equity stakes in companies are taxed at a rate of 10%, with certain rate caps applicable. Since the 2016 Mining Code, income from securities has not been eligible for any tax exemptions.

In the absence of specific legislation regulating sureties, Senegal, as a member of OHADA, is bound by the provisions of the OHADA Uniform Act dated 15 December 2010 on the organisation of securities, which governs sureties and related matters.

Energy sector growth is one of the key priorities for Senegal in its sustainable and economic development strategy, with the aim of achieving the status of an emerging economy in line with the PSE. Adopted in 2024, the PSE outlines the economic and political framework that will guide Senegal in lifting its population out of poverty by 2035. Additionally, the PSE is implemented through five-year action plans developed by the respective ministers, focusing on three main strategic axes:

• structural transformation of the economy and growth;
• human capital, social protection and sustainable development; and
• governance, institutions, peace and security.

The institutional framework for implementing the PSE consists of a strategic orientation committee, headed by the President of the Republic, a steering committee, chaired by the Prime Minister, and an operational bureau, which is responsible for monitoring the PSE’s progress.

Senegal’s commitment to combating climate change is closely aligned with its development objectives, given the crucial role played by international aid in supporting its efforts. The country’s climate policy is fully in line with the PSE, which sets out the national priorities for sustainable development.

On another note, industrialisation plays a central role in structural transformation and economic growth, particularly in this third phase of the PSE. This phase will mark the start of a new era of industrial development on a national scale, making full use of the assets and specific skills of each region of the country. The mining sector falls within this industrialisation effort. The ambition of this key initiative is to make the mining sector in Senegal a powerful driver of sustainable economic and social growth.