SENEGAL Law and Practice Contributed by: Mampionona Razafimamonjy and Tiavina Rakotonaivo, John W Ffooks & Co
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry 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 resourc - es 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 assess - ments 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, artisa - nal and small-scale mining is widespread, especially for gold, presenting both opportunities and challenges related to governance and environmental sustainabil - ity. 1.2 Legal System and Sources of Mining Law 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 ensure uniformity of the rules applicable in commercial matters with other African member coun - tries. The main sources of mining legislation follow. The community regulations governing the mining sec - tor are: • Regulation No 02/2023/CM/UEMOA dated 16 June 2023 and repealing Regulation No 18/2003/CM/ UEMOA of 23 December 2003 on the WAEMU Min - ing 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, exploi - tation and management of mineral resources in Senegal, setting out licensing procedures, environ - mental requirements, fiscal and royalty obligations, and the rights and responsibilities of stakeholders. The Code also includes provisions for state par - ticipation and community development to ensure the equitable distribution of resources. It is worth noting, however, that Senegal is preparing a new law reflecting the 2023 WAEMU Regulation, which will supersede the current Mining Code. • 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 min - ing companies to conduct environmental impact assessments before starting operations and to comply with measures to prevent environmental degradation. • Decree No 2025-227 dated 31 January 2025 implementing some provision of the Environmental Code. • 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 produc - tion-sharing agreements. 1.3 Ownership of Mineral Resources 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
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