Fourteen mining companies are affected by this financial assessment which highlights the low dividends received by the State despite participations of up to 98%.
According to a press release released Thursday, the Société des mines du Sénégal (SOMISEN) has identified fourteen mining companies in which the State holds shares, with stakes ranging from 10% to 98%. These companies mine various substances, including gold, phosphates, iron, limestone, zircon and attapulgite.
The audit, which began in June 2024, reveals that the dividends received by the State are “ weak » or « insignificant » in relation to the wealth generated by mining operations. SOMISN attributes this situation to “ certain conventional and financial practices ».
This observation comes as, according to the 2022 report of the Extractive Industries Transparency Initiative (EITI) of Senegal, revenues generated by the extractive sector increased by 19.7%, reaching 275.33 billion FCFA, 88% of which was allocated to the state budget.
The report specifies that revenues from the mining sector reached 235.71 billion FCFA in 2022, an increase of 32.70 billion compared to 2021. Funds mainly come from the hydrocarbon and mining sectors, with a distribution of revenues to finance social and environmental spending and funds for the rehabilitation of mining sites.
Among the companies concerned by the audit are major players in the sector, such as the Société des mines de fer du Sénégal Oriental (MIFERSO), where the State holds 98% of the shares, Sabodala Gold Operations (SGO), Petowal Mining Company and several other gold mining companies with a 10% state stake.
« At the end of the process, the first report assessing the value of state participation in mining operations will be sent to the authorities “, specifies the document, which underlines that this approach is part of article 25-1 of the Constitution stipulating that ” natural resources belong to the people ».
The audit takes place in a context where Senegal, recognized by the EITI since 2018 for its satisfactory progress in the implementation of the EITI Standard, continues to aim for better management of its resources. The 2022 EITI report made several recommendations, including updating the mining cadastre and publishing contracts and financial statements, to strengthen transparency and optimize revenues generated by natural resources.
AC/SF/APA
