Senegal
Answer ... Ownership of mining rights is determined by the type of permit held. These are as follows:
- small-scale operating authorisation;
- semi-mechanised operating authorisation;
- artisanal operating authorisation;
- operating permit (called titre minier d’exploitation under the new Mining Code); and
- exclusive exploitation authorisation.
Senegal
Answer ... With regard to small-scale operating authorisations, semi-mechanised operating authorisations and operating permits, applicants must have sufficient technical and financial capacity to carry out the works. They must also pay the fees set out in question 4.3.
With regard to artisanal operating authorisations, applicants must:
- be individuals;
- have sufficient technical and financial capacity to carry out the works; and
- pay the fees set out in question 4.3.
Senegal
Answer ... The issuance of an operating permit is subject to the payment of:
- entry fees amounting to XAF 10 million;
- a surface royalty amounting to XAF 250,000 per square kilometre per year; and
- reimbursement of the historical costs to the state or the concerned public owned entity.
The issuance of a small-scale operating authorisation is subject to the payment of:
- entry fees of XAF 2.5 million; and
- a surface royalty amounting to XAF 50,000 per hectare per year.
The issuance of a semi-mechanised operating authorisation is subject to the payment of:
- entry fees amounting to XAF 1.5 million; and
- a surface royalty amounting to XAF 50,000 per hectare per year.
The issuance of an artisanal operating authorisation is subject to the payment of entry fees amounting to XAF 50,000. No surface royalty is payable.
Senegal
Answer ... Small-scale operating authorisation: A small-scale operating authorisation is issued by order of the minister of mines for a period of up to five years. It is renewable for further periods of the same duration until the reserves are exhausted.
The renewal application must be filed at least two months prior to the small-scale operating authorisation expiry date, along with the following documents:
-
information on the small-scale operating authorisation for which renewal is requested;
- all supporting documents relating to the payment of royalties and fees;
- a report on the measures to protect the environment and remedy the site;
- a summary of production and sales during the validity period of the semi-mechanised operating authorisation; and
- a technical note on the nature of works to be performed and the techniques to be used.
The renewal procedure is as follows:
- The dossier is assessed by the mining administration and the applicant is notified of its admissibility.
- The renewed small-scale operating authorisation is issued by order of the Ministry of Mines within 21 days of the notification of admissibility.
- Entry fees are paid amounting to XAF 2.5 million and a surface royalty amounting to XAF 50,000 per hectare per year.
Semi-mechanised operating authorisation: The semi-mechanised operating authorisation is issued for an initial period of up to three years. It may be renewed for further periods of the same duration.
The renewal application must be filed with the Ministry of Mines at least two months prior to the semi-mechanised operating authorisation expiry date, along with the following documents:
- information on the semi-mechanised operating authorisation for which renewal is requested;
- all supporting documents relating to the payment of royalties and fees;
- a report on the measures for protecting the environment and remedying sites;
- a summary of production and sales during the validity period of the semi-mechanised operating authorisation; and
- a technical note stating the nature of the works to be performed and the techniques to be used.
The renewal procedure is as follows:
- The dossier is assessed by the mining administration and the applicant is notified of the dossier’s admissibility.
- The semi-mechanised operating authorisation is issued by order of the Ministry of Mines within 21 days of notification of admissibility.
- Entry fees are paid amounting to XAF 1.5 million and a surface royalty amounting to XAF 50,000 per hectare, per year.
Artisanal operating authorisation: An artisanal operating authorisation is issued by the mining administration for an initial period of five years and may be renewed several times thereafter for the same period.
The new Mining Code does not set out specific provisions on the renewal procedure.
Operating permit: An operating permit is issued by decree for a period of between five and 20 years. Its duration depends on the mineral reserves identified in the feasibility study and the investment required for their exploitation.
An operating permit may be renewed several times for the same period until the resource is exhausted.
The renewal application must be filed in triplicate with the Ministry of Mines at least four months prior to the operating permit expiry date, along with the following documents:
- information on the operating permit for which renewal is requested;
- supporting documents relating to the payment of royalties and fees;
- the duration of the requested renewal;
- the minerals for which the renewal is requested;
- the location of the resources;
- a report on the mining operation since the issuance of the operating permit, including the financial results and the remaining reserves; and
- a technical note on exploration works to be performed, if any.
The renewal procedure is as follows:
- The dossier is assessed by the mining administration and the applicant is notified of the dossier’s admissibility by the Ministry of Mines.
- The renewed operating permit is issued by way of decree.
- Entry fees are paid amounting to XAF 1 million and a surface royalty amounting to XAF 250,000 per square kilometre per year.
Exclusive exploitation authorisation: Please see question 3.6.
Senegal
Answer ... Please see question 4.2.
Senegal
Answer ... Yes – in practice, there may be instances where indigenous people claim ownership of land on certain sites where there are natural resources. In practice, however, the land seldom belongs to them, as they often do not have legal title to the land and are considered only as occupants of the land by the 1964 National Domain Act.
However, in the event of expropriation because of a mining project, the occupants of the land are entitled to compensation from the permit holders.
Senegal
Answer ... The state plays an active role in the mining industry in Senegal. The state is in charge of:
- defining the mining policy;
- promoting the mining industry; and
- ensuring a balance through a mutually beneficial partnership between the state, investors and local communities.
For this purpose, the state is entitled to carry out any mining activities on its behalf, either directly or through entities or individuals. For instance, such partnerships may be established through a production sharing agreement. In addition, the issuance of an operating permit entitles the state to a 10% free carried participation in the share capital of the permit holder and an additional participation of up to 25%.
Senegal
Answer ... The issuance of exploration permits and operating permits gives rise to the establishment of a mining convention with the Ministry of Mines. The mining convention:
- defines the rights and obligations of the state and the permit holder; and
- guarantees the stability of the conditions stated therein.
Pursuant to the Mining Decree, the mining convention must be negotiated within three months of notification of the admissibility of the application for an exploration permit or an exploitation permit. It is then submitted to the minister of finance for his or her opinion and then signed by the minister of mines and the permit holder. Once signed, the mining convention is published in the Official Gazette.
Senegal
Answer ... Operating permits may be transferred, subject to the prior approval of the minister of mines and the payment of the entry fees and taxes.
Small-scale operating authorisations, semi-mechanised operating authorisations and artisanal operating authorisations cannot be transferred.
Senegal
Answer ... A mortgage may be taken over an operating permit.
Senegal
Answer ... The holders of small-scale operating authorisations and semi-mechanised operating authorisations may waive their authorisations by providing the minister of mines with at least one month’s prior notice, without payment of compensation or fines. The waiver does not discharge the holder from its obligations under the Mining Code. Exploitation and real estate assets are transferred to the state free of charge. An order of the minister of mines shall be issued to confirm the waiver.
The Mining Code is silent on the waiver of artisanal operating authorisations.
The holders of operating permits may waive their permits by providing the minister of mines with at least one month’s prior notice, subject to the provisions of the mining convention. The waiver does not discharge the holder from its environmental and rehabilitation obligations, and any obligations under the Mining Code and the mining convention. The mine and the real estate assets are transferred to the state free of charge, unless otherwise provided in the mining convention. A decree shall be issued within one year to confirm the waiver.