mining investment framework in senegal m. ousmane ngom minister of mines & industry* republic of...
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Mining Investment Mining Investment Framework in SenegalFramework in Senegal
M. Ousmane NGOMM. Ousmane NGOMMinister of Mines & Minister of Mines &
Industry*Industry*Republic of SenegalRepublic of Senegal
*Ministry of Mines, Industry, Agricultural Food Product Processing & Small Size-*Ministry of Mines, Industry, Agricultural Food Product Processing & Small Size-EnterprisesEnterprises
1111thth Annual Mining Breakfast and Annual Mining Breakfast and
MineAfrica's 8MineAfrica's 8thth Annual Investing in Annual Investing in
African Mining Seminar African Mining Seminar
March 9, 2010March 9, 2010
Toronto, CanadaToronto, Canada
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OutlineOutline1.1. OverviewOverview
2.2. Current Mineral PotentialCurrent Mineral Potential
3.3. Mineral Law & Policy FrameworkMineral Law & Policy Framework
4.4. Mining IndustryMining Industry
5.5. Ongoing ProjectsOngoing Projects
6.6. Geological InfrastructuresGeological Infrastructures
7.7. Social & Environmental PoliciesSocial & Environmental Policies
8.8. ConclusionConclusion
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OvervieOverview w
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Current Mineral Current Mineral PotentialPotentialPhosphates
Heavy Mineral Sands (Zircon & Titanium)
Iron Ore, Gold, Uranium,
Clays and Limestone
Salt
Others metals and minerals
Copper, Chromium, Nickel, Platinium, Molybdenum, Lithium, Tin,
Baryum, Kaolin, Diatomite
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Mineral Law & Policy:Mineral Law & Policy: Role of the State Role of the State
Create a favourable and enabling climate to attract foreign direct investment;
Make and enforce laws and rules;
Adjudicate rights, liabilities and penalties in a simple, clear, transparent and non discriminatory system;
Act essentially as an institution of support for the private investors;
Total absence of monopoly of the State on any mineral resource in Senegal.
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Mineral Law & PolicyMineral Law & Policy◦ Mineral law based on the French civil law◦ Mining Code: Law N°2003-36 of 23 November, 2003 and
Regulations (Decree) N°2004-647 of 17 May, 2004 Mining Convention Reduction of transaction costs: requests for permits
processed within a maximum of 45 days
◦ Mineral Policy Statement of 6 March, 2003Mineral Policy Statement of 6 March, 2003Diversification of mineral production Beneficiation of mineral products before exportLawful rights and interests of investors guaranteedNon-discriminatory principleProtection of the environment Sustainability of mining will be a key objectiveDesign and implementation of GIS database
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Mineral Law & Policy: Mineral Law & Policy: Access to MineralAccess to Mineral
No discrimination
Clarity, simplicity, transparency and objectivity
Mining titles (Research permit, Permit of exploitation, Mining Concession. )
Unique Mining Convention (Exploration & Exploitation)
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Mineral Law & Policy: Access to Mineral Law & Policy: Access to MineralMineral
Description Reconnaissance
Permit
Exploration
Permit
Exploitation
Permit
Mining
Concession
Fee Free Prescribed Prescribed Prescribed
Maximum size (Sq. Km)Not stipulated Not stipulated
Boundaries of
the deposit
Boundaries of the
deposit
Duration 6 months 3 years 5 years 5-25 years
Renewal 1 X 6 months 2 X 3 years
≤ 5-year
periods≤ 25-year periods
Relinquish areas Not stipulated 25% Not stipulated Not stipulated
Minimum spending According to
programme
According to
programme
According to
programme
According to
programme
Rights
No pre-emptive
right
Moveable,
Transferable,
Transmissible
Retention permit
(24m)
Real property
right,
Transferable,
Transmissible
Mortgageable
Real property right,
Transferable,
Transmissible
Mortgageable
Restrictions Not exclusive, not
transferable, no
customs or tax
privileges
Indivisible Some Some
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Mineral Law & Policy:Mineral Law & Policy: Rights Granted Rights Granted
Tax exemption in stage of exploration and development
Seven (07) to fifteen (15) years exemption from corporate tax for mining concession
Exonerations procedures to permit purchase of goods
Security of tenure
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Mineral Law & PolicyMineral Law & Policy
Fiscal Regime◦ State participation 10% ◦ Tax ad valorem: 3%◦ Tax credit for investments: 40% of the fixed assets over
a period of five (5) years, ◦ Free transfer of capital◦ Eligibility for the benefits from the Investment Code.
◦ During the exploration phase: Exemption from the sales tax and duties on imported
equipment and supplies
◦ During the construction and commissioning period: Benefits from a special tax regime
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Mineral Law & Policy:Mineral Law & Policy: Dispute ResolutionDispute Resolution
Administrative
Judicial Recourse
Conciliation
National or International Arbitration
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Mining Industry: Mining Industry: ExplorationExploration
Multiple deposits and zones of orogenic gold situated in an emerging Sabodala gold-mining district, where almost ten million ounces of gold resources have been found by Oromin, MDL and Randgold, with geological and structural similarities to known gold mines and deposits in neighboring Mali and elsewhere in West Africa.
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Mining Industry: Mining Industry: ExploitationExploitation
SENMINES SSPT
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Ongoing Project: U$ 4 billions Ongoing Project: U$ 4 billions investment over the period 2010-investment over the period 2010-20132013
March 2009: Sabodala brought into production 140 000 ounces/year
U$ 4 billion investment over the period 2010-2013:
2010: Doubling production capacity of the two (02) cement plants to 6 MTPY
2012: Three (03) new cement projects of 4 MTPY2012: Grande Côte Mineral Sands Project :
◦ Zircon: 100,000 TPY ◦ Titanum: 700,000 TPY
2012 : Golouma Gold Mining Project (resources: 3 millions ounces)
2013: Massawa Gold Mining Project (resources : 4 millions ounces)
2013: Falémé Iron Ore Mining Project (15-25 MTPY)2013: Matam Phosphates Mining Project
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Geological Geological InfrastructuresInfrastructures
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Social & Environmental Social & Environmental PoliciesPoliciesEqualization and Support Funds
20% of mineral revenues allocated to local communities
Mining Sites Rehabilitation Funds Dedicated to cover the costs of implementing
the rehabilitation programme The amounts are exempted from taxes on
industrial and commercial benefits
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Senegalese Mining Conference & Exhibition
“Mineral resources, Sustainable Development and Economic Integration”
12 – 15 April 2010
Confirm your participation:Tel: + 44 (0) 207 700 5044 / 44 (0) 207 700 5090 Fax: +44 (0) 207 681 3120
Website: www.simsenegal.com Email: [email protected] , [email protected]
Contact: Audrey Solvar/ James Shindi
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Contact us :
Postal address: Ministry of Mines & Industry122 bis, Av. André Peytavin - DakarB.P. 4037 Dakar RP Tel +221- 33889757 Fax +221- 338225594 Email: [email protected]
Dr Moussa SYLLADirector of Mining & Geology104, rue Carnot, 7th FloorTel: + 221-338 220 419 Email: [email protected]
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