SENEGAL Law and Practice Contributed by: Hariliva Andriamahefa and Mampionona Razafimamonjy, John W Ffooks & Co
2.7 Environmental, Social and Governance (ESG) Guidelines and Regulations Following the rebranding of Caisse Nationale de Credit Agricole du Senegal (CNCAS) to La Banque Agricole (the Agricultural Bank), an envi - ronmental, social and governance (ESG) policy was adopted in February 2018 and updated in December 2019. The policy is designed to pro - mote 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 safeguard 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 Illegal mining is a major problem in Senegal. It generally 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 environmental degrada - tion, soil erosion and water pollution via chemi - cal agents, making it difficult for industrial com - panies to comply with the strict environmental standards set by the laws. The Senegalese government has reacted by set - ting strong penalties for those who practise ille - gal mining. In this regard, the Mining Code states that whoever carries out exploration or exploita - tion of a mine or quarry without authorisation will be punished by imprisonment for a term of up to five years and a fine of up to F.CFA125,000,000 (approximately USD200,000). Illegally extracted
mineral substances will be seized by the com - petent legal authority and confiscated for the benefit of the state or the holder of the mining or quarrying title concerned. Regarding mining companies, they have reacted by focusing on community involvement, raising awareness among local populations of the nega - tive impacts of illegal mining and offering eco - nomic alternatives. For example, co-operation initiatives with local authorities are helping to for - malise artisanal mining, while establishing buffer zones to protect their concessions. 2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects Good Example of Community Relations/ Consultation In Senegal, both positive and negative exam - ples of environmental and community relations in mining projects have emerged. An example of effective community engagement in line with the requirements of the Mining Code is when companies work closely with local stakeholders, ensuring transparent consultations and address - ing concerns about environmental impacts. Min - ing companies that provide community jobs or infrastructure as part of their project planning can build trust and support. These efforts are often part of environmental and social manage - ment systems, where companies actively involve the community in environmental monitoring and promote mutual benefits. Bad Example of Community Relations/ Consultation Some mining projects in Senegal have been the subject of criticism for insufficient consultation and lack of transparency, which has led to ten - sions with local communities. In such cases, fail - ure to address concerns about water contami -
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