The substratum of the Senegalese territory offers great varieties of mineral substances including the noble metals (gold and platinum), the base metals (iron, copper, chromium, nickel), industrial minerals (industrial phosphates, limestone, salts, barytine etc.) heavy minerals (zircon and titanium), decorative stones and building materials etc.
- Senegal has a wealth of diverse and unexploited mineral deposits which until recently have lain dormant. Previously Senegal’s mining industry was dominated by the exploitation of phosphates, industrial limestone and attapulgite. Phosphates in particular formed one of the key components of the Senegalese economy since the time of independence in the 1960’s.
- However, thanks to a new mining Code adopted in 2003 and to the significant investment promotion driven by the Senegalese government and its development partners, the diversification of mining activity is growing through the exploration and the exploitation of gold, iron ore, uranium and copper in the south-east of Senegal as well as the development of zircon and titanium in the littoral zone.
SENEGAL SET TO BECOME ONE OF AFRICA’S LEADING GOLD PRODUCERS
- The production of the first ingot from the Sabodala gold mine in 2009 celebrates the exploitation of a discovery made nearly 50 years ago; previously it had small levels of production, now it can make a real contribution to the Senegalese economy. Today the exploitable resources are estimated to contain 1.63 Moz of gold, with resources of 3.55 Moz.
- A company had been awarded an exploration license for the surrounding area of 230km2. Twenty pockets of mineralization had been found, with four potential fields, current resources are valued to 2.24Moz.
- Adjacent to these two aforementioned projects are 25 gold research permits, occupied by eight foreign companies and nine domestic companies.
LAW No2003-36 of 2003,CONCERNING THE MINING CODE, INTRODUCED SEVERAL INNOVATIONS, INCLUDINGFiscal incentives allowing the holder of a mining concession to benefit from exemptions for a seven- year period, with the aim of encouraging the prompt realization of investments and commencement of production.
- Total exemption of all taxes for the holder of a research permit during the period of validity of the permit and any renewals.
- Exoneration of all Customs duties and taxes, including VAT and the Conseil Sénégalais des Chargeurs (Senegalese Council of Shippers, COSEC) withholding tax on:
- Equipment, materials, supplies, machines, equipment and utility vehicles included in the registered program, and replacement parts and functional items not produced or fabricated in Senegal, which are specifically destined to be used in mining research operations and which are vital to the realization of the research program.
- Fuels and lubricants for fixed facilities, drilling instruments, machines and other equipment destined for research operations under the permit granted.
- Petrol products for producing energy used during the research program.
- And Spare parts and pieces for machines and equipment, specifically used in the realization of the research program. Upon the certified presentation of a research permit, the equipment, materials, supplies, machines, equipment and utility vehicles specifically destined for mining research operations, machines and construction vehicles, which can be re-exported or sold after use, temporarily qualify with the total suspension of duties and taxes on importation and exportation. Specific benefits granted during the development phase are during the period of the realization of investments and the commencement of an exploration or the expansion of the production capacity of an existing mine, the exploration permit holder or the beneficiary a small mine exploration authorization and the contractors working on its behalf benefit from exemption from taxes and duties including VAT and COSEC;
- On materials, equipment, supplies, machines and utility vehicles included in the registered program and equipment directly destined for mining operations.
- Fuels and lubricants for fixed facilities, materials and drills, machines and other equipment destined for mining operations.
- And spare parts and pieces for machines and equipment, specifically destined for mining operations. Financial benefits are granted in the development phase. Throughout the duration of the exploration, holders of exploration or concession contracts or the beneficiaries of a small mine exploration authorization are exempted from the exploration tax on products issuing from their exploration activities within the scope of the awarded title.
- VAT on goods and services purchased from local or foreign suppliers
- Entrance fees
- Minimum basic tax
- Property taxes except for residential property
- Basic tax payable by employers; and from duties and taxes when setting up a new company or raising capital