Mining

Senegal Introduces Reference Price for Phosphate Exports

Senegal Introduces Reference Price for Phosphate Exports
Thursday, 20 June 2024 19:43

Since the beginning of the year, Senegal has applied a reference price for phosphate exports. This floor price is used to calculate the mining royalty paid by producers. This breakthrough is the result of work carried out with the Intergovernmental Forum on Mining (IGF).

Senegal has introduced a reference price for phosphate exports, which will be used to calculate the mining royalty paid by producers. The Intergovernmental Forum on Mining (IGF) contributed to the reference’s adoption.

In a statement issued on June 18, the IGF explained that the new reference will help keep pace with changes in the international phosphate market.

In January 2024, a decree issued by the Senegalese Ministry of Mines introduced a floor price used to calculate mining royalties. This price is determined in part by taking into account the international price index for Moroccan phosphate applicable on the day the phosphate is shipped from the port of Dakar. Companies can subsequently request for an adjustment if they feel that the selling price realized is lower than the price index applied.

With this new pricing system, Senegal intends to solve the issue of self-assessment by firms, as the latter sometimes underestimate the value of mineral exports. In 2022 for example, Senegal obtained $13 million from the sales of phosphate and phosphoric acid, which the ITIE had estimated at nearly $950 million.

"Phosphates play an important role in our mining sector, but year after year, public revenues are not up to scratch. These revenues pale in comparison to mining revenues from gold or mineralized sands," explains Lamine Diouf, director of monitoring and auditing at the Ministry of Mines.

Senegal is one of Africa's leading phosphate producers, with an annual output of over 2 million tonnes. It is outstripped on the continent by Morocco, the world's second-largest producer, and Tunisia.

Emiliano Tossou

On the same topic
GoldBod exceeded its 100-ton ASM gold export target in 2025 ASM gold exports generated $10 billion in revenue during the year The agency...
Nigeria now has ~20,000 EVs on the road. While under 1% of the total fleet, adoption is surging in urban areas like Lagos and Abuja. SAGLEV’s Imota...
The government says cobalt exports have resumed after a ban imposed in February Initial shipments are expected to be limited as testing under the...
Tougher regulation of artisanal cobalt and copper in the DRC is creating a targeted supply shock, tightening markets and reshaping short-term pricing...
Most Read
01

Kenya shipped its first mango consignment to the UK on December 20 The move is part of a pilo...

Kenya targets UK market to boost mango exports
02

Nomba brings Apple Pay to 300k Nigerian shops. Following Paystack, this "second row" move enables ...

Beyond Online Checkouts: Apple Pay Finds a Second Row into Nigeria via Nomba
03

Kenya’s CMA licensed Safaricom and Airtel Money as Intermediary Service Platform Providers (ISPPs)...

Safaricom and Airtel Money Licensed to Facilitate Capital Markets Access in Kenya
04

In Africa, the transformation of food systems has become an urgent issue in the face of rapid popula...

AGRA’s Lilial Githinji “Leadership capacity remains the missing ingredient in Africa’s food systems transformation”
05

The BCID-AES launches with 500B CFA to fund Sahel infrastructure, asserting sovereignty from the B...

AES Launches Confederal Investment Bank: A Strategic Pivot Toward Sahelian Financial Sovereignty
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.