SENEGAL Law and Practice Contributed by: Mampionona Razafimamonjy and Tiavina Rakotonaivo, John W Ffooks & Co
while letting private companies make a profit from the minerals they are allowed to extract (Article 3 of the Mining Code). 1.4 Role of the State in Mining Law and Regulations Role of the State in the Mining Sector In Senegal, the state primarily acts as a grantor-regu - lator rather than an owner-operator in the mining sec - tor. Under the Mining Code, the government – through its ministries – is responsible for granting exploration and exploitation permits and monitoring compli - ance with mining laws, environmental standards and social obligations. It ensures that mineral resources are developed responsibly while safeguarding pub - lic 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 Ventures, Contracting or Participation The Mining Code includes provisions for state par - ticipation 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 addi - tional 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 contract - ed between the state and the investor prior to the issu - ance 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 a further period of validity not exceeding ten years. 1.5 Nature of Mineral Rights Constitutional Basis and Sources of Mineral Rights Mineral rights in Senegal derive from constitutional principles, local laws and regulations from WAEMU. Law No 2001-03, dated 22 January 2001, amended by Law No 2016-10, dated 5 April 2016, and establish - ing 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 commit - ted, 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 over - ride 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. 1.6 Granting of Mineral Rights In Senegal, mineral rights are granted by the govern - ment through the Ministry of Mines. 1.7 Mining: Security of Tenure 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 of 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 explo - ration permit a priority right to obtain an exploitation
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