Minerals Opportunities in Senegal

Ministry of Mines, Industry & Small-Medium SmallSize Enterprises

Direction of Mines & Geology by Dr Moussa SYLLA, Director

Minerals Opportunities in Senegal November 2008

Outline
1. 2. 3. 4.

Overview Mineral Law & Policy Mining Industry Minerals Opportunities

4.1. Minerals & Metals 4.2 Materials

Current Mineral Potential

Metals ands Minerals : Iron Ore, Gold, Heavy Mineral Sands (Zircon & Titanium), Base Metals, phosphates, Industrial Minerals (Limestone, Silica & Clays) Materials : limestones, sandstones, marbles, etc

Mineral Law & Policy

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: Transparent & Clarity Reduction of transaction costs

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

Description

Reconnaissance Permit

Exploration Permit

Exploitation Permit

Mining Concession

Fee Maximum size (Sq. Km)

Free Not stipulated

Prescribed Not stipulated

Prescribed Boundaries of the deposit 5 years 5-year periods until exhaustion of the deposit Not stipulated According to programme Yes Yes Yes Yes Real property right, Transferable, Transmissible Mortgageable Some

Prescribed Boundaries of the deposit 5-25 years 2525-year periods until exhaustion of the deposit Not stipulated According to programme Yes Yes Yes Yes Real property right, Transferable, Transmissible Mortgageable Some

Duration (months) Renewal (months)

6 1X6

36 2 X 36

Relinquish areas Minimum spending

Not stipulated According to programme Yes No No Yes No pre-emptive right pre-

25% According to programme Yes Yes No Yes Moveable, Transferable, Transmissible Retention permit (24m) Indivisible

Work to program Environmental plan Social requirement Reporting requirement Rights

Restrictions

Not exclusive, not transferable, no customs or tax privileges

Fiscal Regime
State participation 10% - Negotiation of local partnership in mining ventures Tax ad valorem: 3% Tax credit for investments amounting to 40% of the fixed assets over a period of five (5) years, levelled off, for each exercise, at 50% of the taxable income for the new companies, and at 25 % for extensions Free transfer of capital Companies working in the mining sector are eligible for the benefits of the Investment Code. During the exploration phase: exemption from the sales tax and duties on imported equipment and supplies necessary for exploration activities, as well as on fuel used for operation of fixed installations. During the construction and commissioning period: benefits from a special tax regime

Mining Industry

Mining Industry
Mines & Quarries

Production dominated by: Phosphate rock Gold Clay (attapulgite) Basalt: Concrete Laterites: Road Construction Limestone: Concrete & Cement Industry

Minerals and metals opportunities

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Where are located mineral resources?

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Map of mineral deposits of Senegal

Lime Phosphates prospecting license on promotion

Gossas prospecting license Kanel and Thilogne Prospecting licenses (in North of Matam concession)

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Lime Phosphates prospecting license on promotion

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Areas sheltering the lime phosphates mining prospecting license on promotion

prospecting concession of Lime phosphates at the North of Matam

Kanel & Thilogne Prospecting licenses

Matam Mining concession

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Location map of mining concession and the license prospection at the Norh of Matam

prospecting concession of Lime phosphates of Gossas

POINTS X A 344566 B 360650 C 421819 D 437903 E 383066 Y 1617850 1617471 1634568 1612151 1562886

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prospecting concession of Lime phosphates of Gossas

Lam-lam Aluminum calcic phosphates : prospecting license in promotion

Zones 8 (850 ha) : 80 MT at 28% %, 30%Al2O3, and 10%CaO Potential of several hundreds of MT in the 17500 ha of old mining concessions 27 S and 29 S canceled in 2007 Delimitation of Zone 8 in seven (07) concessions for the promotion of the production of natural manures (natural, clinker and phospal) and of food animal : 01 concession of 108 ha for SSPT is being instructed Dlimitation of 02 prospectig license for the both valorisation of P2O5 and alumina Al2O3

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Coal prospecting license on promotion

Points X 392363 Y 1630914

368891

1658687

396853

1713860

433352

1713860

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Coal prospecting license of Darou Mousty

Peats exploitation project : Power Energy Option

Location: between Mboro and Lompoul Potential reserves: more than 52 millions m3 Energy production : Exploitables Reserves : 22.9 millions m3 with calorific value higher medium of 4500 Kcal/Kg Power Energy: 2 powerplants of 15 MW for 25 ans

Peats bogs

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Niayes peat bogs location

Peats exploitation Project : domestic use

fuels: peat carbonized in ash in proportion lower than 35% Possible production : 30 MT of peat-coal per year for 20 years (5 industrial facilities of 6 MT per year peat coal) Impacts on deforestation

Substitution of 30 MT/year de charbon de bois Dakar Economie de 80 000 ha de plantations darbres croissance rapide pendant plus de 20 ans

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Industrial clays (attapulgites clays)

Very important reserves in This and Dakar region (Sbikotane) Exploited by three (03) societies :

Outlets: animal litter, oil drillings mud, mineral charge

SSPT at Allou Kagne and Sbikotane Sngal-Mines at Mbodine Prochimat at Nianing Nota Bena : Nianing and Mbodine Mining Concessions of SSPT always unexploited

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4.1. Minerals & Metals

Gold: key figures

Location: Kdougou Region Prospecting license: 23 granted to 14 companies including 8 senegalese 07 submitted (in voice) 02 not submitted Mining Concessions granted : 02 to Sabodala Gold Operation and Sored Mine

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Gold Prospecting license location

Copper and chromium

Prospecting license of Gabou: (Bakel departement) granted to a senegalese society International 3S Prospecting license of Diabougou: (Kedougou departement) granted to the senegalese Gold Mining and Goods

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Location map of CooperMolybdenum prospecting license

Copper and Molybdenum prospecting license in promotion

Points A X 825659 Y 1421922

796238

1421922

796238

1454805

7825659

1454805

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Location map of Cu-Mo prospecting license of Kanmr

Prospecting license of Molybdenum (Mo), Niobium (Nb) et Tantalum (Ta) on promotion

Points X Y

803215

1531936

824150

1556363

805346

1556301

805346

1531742

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Location map Diambaloye Prospecting license

Tin (Sn) and Lithium (Li) Prospecting license on promotion

Prospecting license of Binia

Points A B C X 860433 851173 868152 876865 Y 1403210 1414170 1436543 1426105

Prospecting license of Bababrie

Points A B C D X 869270 852080 835291 852080 Y 1438968 1421258 1439171 1454482

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Tin (Sn) and Lithium (Li) Prospecting license on promotion (continued)

Prospecting license of Nafadji Points A B C D X 880506 854750 854750 880506 Y 1384361 1384361 1402489 1402489

Prospecting license of Ylimalo Points A B C D X 886993 867958 867958 875029 Y 1449132 1449113 1468664 1468823

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Materials opportunities

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Substances
Industrial Limestone

Uses
Cement Lime Concrete

Quality & Resources

High Limestone Quality: 95% CaCO3 Important resources SiO2 : 91.95-98.36%; Fe2O3: 0.2-

Location
Bandia, Pout, Thies Mbour, Diaganiao

Malika; Diogo

Silica Sand

Glasses Ceramics

0.5%; Al2O3:0.1-2.7%; CaO: 0.73.1% Important resources Important resources Toglou Mbang Paki

Sandstone

Concrete Ornamentals Concrete Ornamentals

Silexite

> 100 Million Tons

Thies (Taiba, Tobene)

Clay

Ceramics (Red) Cement Ornamentals

High Quality Important resources

This (Tchiki, Pout) Ziguinchor (Baila, Oussouye, Sefa)

Marble

Important resources Kedougou (Ndebou, 3 Marketable varieties (Black, White Bandafassi, Ibel) & Pink)

Contact: Direction of Mines & Geology Tel/fax: 221-33 822 0419 221Email: mousylla@orange.sn

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