Presentation on theme: "Mining Investment Framework in Senegal M. Ousmane NGOM Minister of Mines & Industry* Republic of Senegal *Ministry of Mines, Industry, Agricultural Food."— Presentation transcript:
Mining Investment Framework in Senegal M. Ousmane NGOM Minister of Mines & Industry* Republic of Senegal *Ministry of Mines, Industry, Agricultural Food Product Processing & Small Size-Enterprises 11 th Annual Mining Breakfast and MineAfrica's 8 th Annual Investing in African Mining Seminar March 9, 2010 Toronto, Canada
2 Outline 1. Overview 2. Current Mineral Potential 3. Mineral Law & Policy Framework 4. Mining Industry 5. Ongoing Projects 6. Geological Infrastructures 7. Social & Environmental Policies 8. Conclusion
4 Current Mineral Potential Phosphates 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
5 Mineral Law & Policy: 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.
6 Mineral 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, 2003 Diversification of mineral production Beneficiation of mineral products before export Lawful rights and interests of investors guaranteed Non-discriminatory principle Protection of the environment Sustainability of mining will be a key objective Design and implementation of GIS database
7 Mineral Law & Policy: Access to Mineral No discrimination Clarity, simplicity, transparency and objectivity Mining titles (Research permit, Permit of exploitation, Mining Concession. ) Unique Mining Convention (Exploration & Exploitation)
8 Mineral Law & Policy: Access to Mineral Description Reconnaissance Permit Exploration Permit Exploitation Permit Mining Concession Fee FreePrescribed Maximum size (Sq. Km) Not stipulated Boundaries of the deposit Duration 6 months3 years5 years5-25 years Renewal 1 X 6 months2 X 3 years ≤ 5-year periods ≤ 25-year periods Relinquish areas Not stipulated25%Not stipulated Minimum spending According to programme Rights No pre-emptive right Moveable, Transferable, Transmissible Retention permit (24m) Real property right, Transferable, Transmissible Mortgageable Restrictions Not exclusive, not transferable, no customs or tax privileges IndivisibleSome
9 Mineral Law & Policy: 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
10 Mineral 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
11 Mineral Law & Policy: Dispute Resolution Administrative Judicial Recourse Conciliation National or International Arbitration
12 Mining Industry: Exploration 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.
14 Ongoing Project: U$ 4 billions investment over the period 2010-2013 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 MTPY 2012: 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
Social & Environmental Policies Equalization 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 17
18 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: firstname.lastname@example.org, email@example.com@firstname.lastname@example.org Contact: Audrey Solvar/ James Shindi
19 Contact us : Postal address: Ministry of Mines & Industry 122 bis, Av. André Peytavin - Dakar B.P. 4037 Dakar RP Tel +221- 33889757 Fax +221- 338225594 Email: email@example.com@msn.com Dr Moussa SYLLA Director of Mining & Geology 104, rue Carnot, 7th Floor Tel: + 221-338 220 419 Email: firstname.lastname@example.org@orange.sn OR