Mining Investment
Framework in Senegal
M. Ousmane NGOM
Minister of Mines & Industry*
Republic of Senegal
11th Annual Mining Breakfast and MineAfrica's
8th Annual Investing in African Mining Seminar
March 9, 2010
Toronto, Canada
*Ministry of Mines, Industry, Agricultural Food Product Processing & Small Size-Enterprises
Outline
1.
Overview
2.
Current Mineral Potential
3.
Mineral Law & Policy Framework
4.
Mining Industry
5.
Ongoing Projects
6.
Geological Infrastructures
7.
Social & Environmental Policies
8.
Conclusion
2
Overview
3
Current Mineral Potential
Phosphates
Heavy Mineral Sands (Zircon & Titanium)
Iron Ore, Gold, Uranium,
Clays and Limestone
Salt
Others metals and minerals
Copper, Chromium, Nickel, Platinium, Molybdenum, Lithium, Tin,
Baryum, Kaolin, Diatomite
4
Mineral Law & Policy:
Role of the State
 Create
a favourable and enabling climate to attract
foreign direct investment;
 Make
and enforce laws and rules;
 Adjudicate
rights, liabilities and penalties in a simple,
clear, transparent and non discriminatory system;
 Act
essentially as an institution of support for the
private investors;
 Total
absence of monopoly of the State on any mineral
resource in Senegal.
5
Mineral Law & Policy
◦ Mineral law based on the French civil law
◦ Mining Code: Law N°2003-36 of 23 November, 2003 and Regulations
(Decree) N°2004-647 of 17 May, 2004
 Mining Convention
 Reduction of transaction costs: requests for permits processed
within a maximum of 45 days
◦ Mineral Policy Statement of 6 March, 2003
 Diversification of mineral production
 Beneficiation of mineral products before export
 Lawful rights and interests of investors guaranteed
 Non-discriminatory principle
 Protection of the environment
 Sustainability of mining will be a key objective
 Design and implementation of GIS database
6
Mineral Law & Policy:
Access to Mineral

No discrimination

Clarity, simplicity, transparency and objectivity

Mining titles (Research permit, Permit of exploitation,
Mining Concession. )

Unique Mining Convention (Exploration & Exploitation)
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Mineral Law & Policy: Access to Mineral
Description
Reconnaissance
Exploration
Exploitation
Mining
Permit
Permit
Permit
Concession
Free
Prescribed
Prescribed
Prescribed
Not stipulated
Not stipulated
Boundaries of
Boundaries of the
the deposit
deposit
6 months
3 years
5 years
5-25 years
1 X 6 months
2 X 3 years
Relinquish areas
Not stipulated
25%
Not stipulated
Not stipulated
Minimum spending
According to
According to
According to
According to
programme
programme
programme
programme
Moveable,
Real property
Transferable,
right,
Transmissible
Transferable,
Retention permit
Transmissible
(24m)
Mortgageable
Indivisible
Some
Fee
Maximum size (Sq. Km)
Duration
Renewal
Rights
No pre-emptive
right
Restrictions
≤ 5-year
periods
≤ 25-year periods
Real property right,
Transferable,
Transmissible
Mortgageable
Not exclusive, not
transferable, no
customs or tax
privileges
Some
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Mineral Law & Policy:
Rights Granted
 Tax
exemption in stage of exploration and
development
 Seven
(07) to fifteen (15) years exemption from
corporate tax for mining concession
 Exonerations
goods
 Security
procedures to permit purchase of
of tenure
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Mineral Law & Policy

Fiscal Regime
◦ State participation 10%
◦ Tax ad valorem: 3%
◦ Tax credit for investments: 40% of the fixed assets over a period of five
(5) years,
◦ Free transfer of capital
◦ Eligibility for the benefits from the Investment Code.
◦ During the exploration phase:
 Exemption from the sales tax and duties on imported equipment
and supplies
◦ During the construction and commissioning period:
 Benefits from a special tax regime
10
Mineral Law & Policy:
Dispute Resolution
 Administrative
 Judicial
Recourse
 Conciliation
 National
or International Arbitration
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Mining Industry: Exploration
Multiple deposits and zones of orogenic
gold situated in an emerging Sabodala
gold-mining district, where almost ten
million ounces of gold resources have
been found by Oromin, MDL and
Randgold, with geological and structural
similarities to known gold mines and
deposits in neighboring Mali and
elsewhere in West Africa.
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Mining Industry: Exploitation
SENMINES
SSPT
13
Ongoing Project: U$ 4 billions
investment over the period 2010-2013
March 2009: Sabodala brought into production 140 000
ounces/year

U$
4 billion investment over the period 2010-2013:
2010: Doubling
production capacity of the two (02) cement plants
to 6 MTPY
2012:Three (03) new cement projects of 4 MTPY
2012: Grande Côte Mineral Sands Project :
◦
◦
Zircon: 100,000 TPY
Titanum: 700,000 TPY
2012
: Golouma Gold Mining Project (resources: 3 millions ounces)
2013: Massawa Gold Mining Project (resources : 4 millions ounces)
2013: Falémé Iron Ore Mining Project (15-25 MTPY)
2013: Matam Phosphates Mining Project
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Geological Infrastructures
15
16
Social & Environmental Policies
 Equalization and Support Funds
 20% of mineral revenues allocated to local
communities
 Mining Sites Rehabilitation Funds
 Dedicated to cover the costs of implementing the
rehabilitation programme
 The amounts are exempted from taxes on
industrial and commercial benefits
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Senegalese Mining Conference & Exhibition
“Mineral resources, Sustainable Development and Economic Integration”
12 – 15 April 2010
Confirm your participation:
Tel: + 44 (0) 207 700 5044 / 44 (0) 207 700 5090 Fax: +44 (0) 207 681 3120
Website: www.simsenegal.com Email: audrey@ametrade.org , james@ametrade.org
Contact: Audrey Solvar/ James Shindi
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Contact us :
Postal address:
Ministry of Mines & Industry
122 bis, Av. André Peytavin - Dakar
B.P. 4037 Dakar RP 
Tel  +221- 33889757 
Fax  +221- 338225594 
Email: mindpme@msn.com
OR
Dr Moussa SYLLA
Director of Mining & Geology
104, rue Carnot, 7th Floor
Tel: + 221-338 220 419
Email: mousylla@orange.sn
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