• Senegal plans to revoke 71 mining and quarry licenses as part of a sector cleanup.

• The move follows similar reforms in Guinea, Mali and Niger.

• Authorities say the measures aim to protect national economic interests and increase public revenue.

Senegal is preparing to tighten oversight of its mining sector, with Prime Minister Ousmane Sonko announcing new measures that include the planned revocation of 71 mining and quarry licenses. The announcement was made during a press briefing late last week.

The initiative places Senegal within a broader regional trend, as several West African countries have recently launched similar reforms aimed at strengthening state control over natural resources.

Irregularities identified

Among the measures announced, the possible non-renewal and recovery of concessions held by Industries Chimiques du Sénégal (ICS) has drawn particular attention. The company, which operates several phosphate deposits in the country, has been accused of various irregularities, including failures in the payment of taxes and royalties.

According to Sonko, these practices may have caused the state to lose around CFA1,075 billion (about $1.88 billion) in revenue between 2014 — the year the Indonesian group Indorama acquired ICS — and today.

Authorities have also indicated that around 71 mining and quarry licenses could be withdrawn, including 14 gold permits and one permit related to mineral sands. The decisions reportedly follow failures by the permit holders to meet investment commitments and regulatory requirements, although the identities of the companies involved have not been disclosed.

The prime minister did not specify whether the affected titles relate to exploration permits or to operating licenses.

The development echoes the large-scale cleanup campaign launched last year in Guinea, where more than 100 mining permits were revoked. Mali also withdrew more than 90 exploration permits in October. Niger has taken similar steps in the uranium sector, notably by withdrawing the permit for the Madaouela project held by GoviEx and the license linked to the SOMAIR mine operated by the French group Orano, amid allegations related to the distribution of profits.

Protecting national economic interests

Taken together, these measures reflect a growing determination among West African governments to assert greater control over their natural resources.

With significant economic stakes involved, several countries have sought to renegotiate the terms of mining contracts — as in Mali — or even nationalize certain concessions, as seen in Niger with the SOMAIR mine. Another option being explored is the reallocation of permits to new partners. Sonko suggested that future licenses could be awarded to companies considered “much more serious.”

In each case, the objective is to safeguard national economic interests while promoting more balanced partnerships between governments and investors.

The policy also reflects Senegal’s effort to mobilize additional public revenue at a time when the country faces growing fiscal pressure. According to the International Monetary Fund, Senegal’s effective public debt could reach 132% of GDP.

The reform effort extends beyond mining alone. Authorities are also reviewing contracts in the hydrocarbons and infrastructure sectors.

According to the Extractive Industries Transparency Initiative (EITI), the extractive sector — including mining, quarries and hydrocarbons — accounted for 31.89% of Senegal’s exports and 4.7% of its GDP in 2023.

The full impact of the announced measures will become clearer in the coming months, as the government also prepares a new mining code intended to replace the framework in place since 2016.

Guinea’s experience highlights the potential risks involved. Following the revocation of certain permits there, the Emirati company Axis Minerals launched arbitration proceedings against the Guinean state, seeking $28.9 billion in damages.

In Senegal, several foreign companies operate in the mining sector, including France’s Eramet and gold producers Endeavour Mining, Resolute Mining and Fortuna Mining.

Aurel Sèdjro Houenou