SENEGAL Law and Practice Contributed by: Hariliva Andriamahefa and Mampionona Razafimamonjy, John W Ffooks & Co
3.4 Energy-Transition Minerals There are no governmental or legislative initia - tives regarding the increasing demand for so- called energy-transition minerals in Senegal. 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 generally due upon the granting or renewal of a mining title. Since 2016, the issu - ance and renewal of a mining exploitation permit in Senegal have been subject to a fixed fee of F.CFA10 million. 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 F.CFA250,000 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 min - eral. 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 Senegal does not differentiate between national taxes and those specifically targeting foreign investors. Mining companies operating in Sene - gal are subject to the standard corporate income tax rate, which has been set at 30% since 2013.
nation, land rights or employment opportunities has resulted in social issues and conflicts. Some mining companies have been slow to respond to complaints, which has caused further difficul - ties. The Mining Code and Environmental Code requires that consultation processes are in place and that the voices of impacted communities are heard, but challenges remain in ensuring these are genuinely participatory and not just a for - mality.
3. Climate Change, Energy Transition and Sustainable Development in Mining 3.1 Climate Change Effects
The transparency framework developed by the Senegalese authorities is in progress. To make the national measurement reporting and verifi - cation (MRV) system effective, the government has established an online training programme for government officials and relevant stakeholders on the use of the MRV system. 3.2 Climate Change Legislation and Proposals Related to Mining There is currently no specific legislation relating to climate change or global warming in Senegal. The outstanding laws are the environmental pro - visions set out in the Mining Code. 3.3 Sustainable Development Initiatives Related to Mining There are currently no sustainable development initiatives related to climate change or global warming in Senegal. The outstanding laws are those mentioned in the foregoing.
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