SENEGAL Law and Practice Contributed by: Hariliva Andriamahefa and Mampionona Razafimamonjy, John W Ffooks & Co
sation 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, exploitation and management of mineral resources in Senegal, setting out licensing procedures, environmental require - ments, fiscal and royalty obligations, and the rights and responsibilities of stakeholders. The Code also includes provisions for state participation and community development to ensure the equitable distribution of resources. • Law 2023 – 15 of 2 August 2023 on the environment (the “Environmental Code”): The Environmental Code regulates environmen - tal management and sustainability in mining operations, requiring mining companies to conduct environmental impact assessments before starting operations and to comply with measures to prevent environmental degrada - tion. • 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 production-sharing agreements. 1.3 Ownership of Mineral Resources Following the provisions set by Article 3 of the Mining Code, mineral resources are the prop - erty of the nation. This implies that all the min - erals 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 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- regulator rather than an owner-operator in the mining sector. Under the Mining Code, the gov - ernment – through its ministries – is responsible for granting exploration and exploitation permits and monitoring compliance with mining laws, environmental standards and social obligations. It ensures that mineral resources are developed responsibly while safeguarding public and envi - ronmental interests. The state maintains owner - ship 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 Venture, Contracting or Participation The Mining Code includes provisions for state participation 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 additional 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 contracted between the state and the investor prior to the issuance 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
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