SENEGAL Law and Practice Contributed by: Mampionona Razafimamonjy and Tiavina Rakotonaivo, John W Ffooks & Co
2.6 Community Development Agreement for Mining Projects The Senegalese Mining Code provides for the estab - lishment of a local development fund to ensure that mining projects contribute directly to the socio-eco - nomic development of affected communities. Mining companies are required to contribute 0.5% of their turnover to this fund, excluding taxes. The local devel - opment fund is used to finance projects that benefit the community and promote sustainable development in mining areas. The management of the fund is overseen by local authorities and representatives of the affected com - munities to ensure that it meets their specific needs and priorities. 2.7 ESG Guidelines and Regulations Following the rebranding of Caisse Nationale de Credit Agricole du Senegal (CNCAS) to La Banque Agricole (the Agricultural Bank), an environmental, social and governance (ESG) policy was adopted in February 2018 and updated in December 2019. The policy is designed to promote sustainable banking activities by seeking to protect the environment and people from the potential negative impacts of financing. The bank encourages borrowers/clients and partners to comply with the safeguarding standards of the ESG policy during the preparation and execution of projects and financed activities. The bank’s ESG policy is periodically reviewed with a view to ensuring continued applicability to the bank’s activities. 2.8 Illegal Mining Illegal mining is a major problem in Senegal. It gen - erally occurs in artisanal and small-scale operations and overlaps with concessions held by industrial operators, leading to operational conflicts and loss of resources. Furthermore, illegal mining causes environ - mental degradation, soil erosion and water pollution via chemical agents, making it difficult for industrial companies to comply with the strict environmental standards set by the laws. The Senegalese government has reacted by setting strong penalties for those who practise illegal min -
companies’ access to certain reserves, potentially reducing their operational scope and profitability. The requirement to avoid said areas increases the need for careful project planning and environmental assess - ments, which can lead to higher compliance costs and operational adjustments. 2.3 Impact of Community Relations on Mining Projects The Ministry of Mines in Senegal addresses communi - ty relations with respect to mining projects by mandat - ing public consultations and community involvement throughout the project life cycle, as required by the Mining Code and the Environmental Code. On the one hand, mining companies must conduct environmental and social impact assessments, which include consultations with affected communities to ensure their concerns are addressed. On the other hand, mining companies are specifically required to contribute to the development of local communities through mechanisms like a local devel - opment fund ( fonds de développement local ), funded by mining revenues to support community projects and considering the opinion of local communities and authorities. Additionally, to avoid any potential issue between the community and the mining operators, the Mining Code requires the latter to prioritise Sen - egalese workers and to promote equal employment opportunities. 2.4 Prior and Informed Consultation on Mining Projects Informed consultations are required when the investor wants an authorisation to open a public/private quarry, or for artisanal mining exploitation. The responsibility for carrying out these consultations with the relevant authorities and local communities lies with the Min - istry of Mines.
2.5 Impact of Specially Protected Communities on Mining Projects
Senegal does not recognise indigenous or traditional people. Under its Constitution, there are no statutes or privileges relating to place of birth, person or family.
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