Senegal’s geology has to a large extent dictated mineral production in the country. Senegal’s phosphate and heavy mineral sand deposits are located within a large coastal basin of Mid Jurassic to recent age sediments that cover most of the country. Gold, diamonds, iron ore and base metals are hosted within Archaean and Proterozoic age rocks that are restricted to the far eastern parts of the country, bordering with Mali. The minerals industry produces approximately 20% of Senegal’s export earnings as well as 20% of the country’s GDP.
A 10 Mt titanium resource has been identified located in heavy mineral sands deposits near the coast.
An exploration permit is granted for a period of 4 years, renewable twice for 3 years. During the exploration phase, the permit holder is exempt from the sales tax and duties on imported equipment and supplies necessary for exploration activities, as well as on fuel used for operation of fixed installations.
Should the exploration phase be successful, the permit holder enters into a new contract agreement with the State, which will regulate the relationship between the two parties during the mining phase. The mining permit is granted for a period of 5 years and is renewable, while a mining concession is valid for 25 years, also renewable. During the construction and commissioning period, the permit holder benefits from a special tax regime aimed at the promoting of the development of the mining sector in the country.
The mining company, which operates autonomously in its activities, is allowed to expatriate its profits.
Companies working in the mining sector are eligible for the benefits of the Investment Code. Any investment reaching F CFA 5 million is expected to create at least 3 jobs. Investors are requested to provide a minimum of 20% of the investment for S.M.E`s and 30% for larger companies.
Requests for permits are processed within a maximum of 30 days. All administrative formalities are handled in one single location.
In addition to the guarantees usually granted to investors, the free transfer of capital (foreigners and nationals are treated the same manner re. the Administration) is guaranteed for investments and operations. Also, specific advantages are granted to S.M.E.`s which make use of local resources, promote technological innovation and locate outside the Dakar-Rufisque region (zone A).
