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teranga

Senegal is a safe and stable democracy. Recognized as a key pillar for the country's economic growth, the Senegalese government demonstrates strong support for the mining sector. 

Senegal
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Mining in Senegal

A democratic government and mining-friendly government

Located in West Africa, Senegal has an estimated population of 14.1 million (2013) and a total area of approximately 197,000 km2. Dakar, the capital, is located on the most westerly point of Africa.

Senegal lies within the Sahel, the semi-desert, or Savannah region that forms a broad band across Africa between the Sahara desert to the north and the forested countries to the south. The landscape is generally low, rolling plains rising to foothills in the southeast. The climate is tropical, with a hot and humid wet season from May through to October.

Senegal gained its independence in 1960, following approximately 75 years of French rule. As a democratic republic governed under multi-party rule based on the French civil law system, many foreign embassies and international bank headquarters have chosen Senegal for their headquarters in West Africa.

Senegal’s economy is driven by mining, agriculture, fisheries, construction, and tourism. The country's keys export industries include phosphate mining, fertilizer production, agricultural products and commercial fishing.

Senegal Mining Code

Mining is a key pillar of economic growth in Senegal. The Government adopted  a new Mining Code in November 2003 to attract and promote mineral resource investment and development in the country. Under the Mining Code, proper governmental authorization is required before undertaking any form of mining activity. In this regard, the right to explore minerals is conferred only by a permit of exploitation or a mining concession.

A permit for mineral exploration activities is granted for a period not exceeding three years, and is renewable. During the exploration phase, the permit holder is exempt from sales tax and duties on imported equipment and supplies necessary for exploration activities, as well as on fuel used for the operation of stationary installations.

Following exploration success, the permit holder may enter into a mining contract agreement with the State, which provides the State a free carried interest of 10% of the project.  

Global Agreement with the Republic of Senegal

Teranga signed a Global Agreement (“Agreement”) with the Republic of Senegal in May 2013, which sets out a predictable and stable fiscal operating environment for the Company's future investment in exploration, acquisitions and development to increase reserves and production in Senegal. The Agreement included amendments to the Company's 90% held Sabodala Mining Convention, certain of its exploration permits, as well as future royalty and other payments to the Republic of Senegal.  

Pursuant to the Agreement, Teranga pays a 5% royalty on sales and is allowed to expatriate profits.

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