Mining 2026

SENEGAL Law and Practice Contributed by: Mampionona Razafimamonjy and Tiavina Rakotonaivo, John W Ffooks & Co

4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes The tax system for exploration and mining in Senegal is strictly regulated. With this said, fixed fees are gen - erally due upon the granting or renewal of a mining title. Since 2016, the issuance and renewal of a mining exploitation permit in Senegal have been subject to a fixed fee of XOF10 million (approximately USD17,120). On another note, the surface royalty is based on the size of the mining area. In this regard, the holder of a mining permit in Senegal is required to pay an annual surface royalty of XOF250,000 (approximately USD437) per square kilometre. Additionally, there is a mining royalty that is applied to the value of the extracted mineral, with rates varying depending on the type of mineral. For example, for gold, the royalty rate is 5% of the market value, which is reduced to 3.5% if the gold is refined in Senegal. It is also noteworthy that the current Tax Code in Sen - egal does not differentiate between national taxes and those specifically targeting foreign investors. Mining companies operating in Senegal are subject to the standard corporate income tax rate, which has been set at 30% since 2013. 4.2 Tax Incentives for Mining Investors and Projects According to the explanatory note of the 2016 Mining Code, the incentive approach of the 2003 Code was characterised by a broad range of exemptions. This situation did not promote an equitable distribution of revenues between the investor and the state. There - fore, the adoption of the new Mining Code marked the culmination of the fiscal reform process in Senegal’s mining sector. Regarding tax stabilisation agreements, the relevant laws in Senegal allow the inclusion of stability clauses, which provide guarantees to investors against poten - tial increases in tax burdens. The Senegalese state has committed to ensuring that the taxation applica - ble to a mining project will remain fixed and consistent with the terms agreed upon at the time of signing the

mining convention or granting the exploitation permit. It is important to note that the conditions and dura - tion of such stability are determined within the mining convention itself. On another note, it should be noted that bilateral double tax treaties can limit taxation. However, there is also the provision for denunciation of a tax trea - ty, where the source state can choose to denounce such treaty. For example, according to the Senegalese government, the country lost USD257 million over 17 years as a result of the tax treaty signed with Mau - ritius. If the other state party to the treaty refuses to amend or replace it with a new one, the source state may be forced to denounce it unilaterally. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects The General Tax Code provides for a 5% registration fee for the transfer of mining titles, calculated based on the value of the transaction, to ensure appropri - ate taxation and regulate the transfer of mining rights. This registration fee is applicable for transfers through corporate structures outside of Senegal. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining As a country endowed with significant mineral resources, Senegal is actively working to promote its mining sector both nationally and regionally. In line with this vision, the government aims to posi - tion the mining industry as one of the key drivers of the country’s economic growth through an initiative called the “Regional Mining Hub”. This project, part of Plan Sénégal Emergent (PSE) for the period 2024–28, seeks to establish Senegal as a leading mining service centre in West Africa. To achieve this, Senegal is committed to implement - ing a strategic framework designed to make the min - ing sector more attractive to investors. Alongside the Regional Mining Hub initiative, the government is also advancing several flagship projects, including: • the effective exploitation of the Falémé iron ore deposit;

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