Management of Phosphates and extractive resources in Senegal: The new course set by the government

Renegotiation of mining conventions, new mining code, local transformation and national strategy: during his General Policy Declaration, the Prime Minister, Mouhamadou Al Amine Lo, announces a new approach in the management of extractive resources.

The Senegalese mining sector is entering a new phase. In his General Policy Declaration, the Prime Minister laid the foundations for an extractive policy more articulated around economic sovereignty, local transformation and increased control of commitments made by operators. Although the companies concerned are not mentioned by name, several directions announced directly concern the environment in which players in the phosphate sector operate.

First marker of this new doctrine: the continued review of contracts concluded in strategic sectors. The ad hoc Commission created in July 2024 continues its work and, according to the Prime Minister, around thirty mining conventions are currently being renegotiated. The government, however, intends to avoid a logic of rupture. Three principles are affirmed: legal certainty for investors in good faith, firmness when the national interest has been harmed and balance in the processing of files, summarized by the formula: “neither brutality, nor naivety”.

This approach is accompanied by a broader requirement for future public-private partnerships. From now on, these must be based on “the truth of the costs and risks”, with a prior assessment of their long-term budgetary commitments. An inflection which reflects the desire displayed by the authorities to strengthen the economic evaluation of contracts and to better measure their impact on public finances.

Phosphate at the heart of local processing

On the mining front, the government announces the adoption of a new Mining Code before the end of 2026, the continuation of the renegotiation of conventions, the finalization of the audit of mining titles as well as the full operationalization of several institutional instruments, including the Site and Quarry Rehabilitation Fund, the mining cadastre and the Local Development Support Fund.

Furthermore, local transformation becomes a central axis. The Prime Minister announces that “iron, phosphates and gold will be processed more locally”. In this perspective, State participation must be consolidated while the access of the national private sector to titles and exploitation will be expanded.

On another note, the government is setting specific objectives for 2029. This involves bringing the State’s annual mining revenues to around 600 billion FCFA, compared to 370 billion in 2019, and the added value of the sector to 3,606 billion FCFA, against 1,969 billion. The local processing rate is set at 50%.

This ambition is also based on dynamic local content with obligation to control. In this regard, the Prime Minister announces that the government will follow “contract by contract”, with an annual publication of the achievement rates.

A national phosphate strategy in preparation

The signal most directly linked to the phosphate sector, however, lies in the announcement of a national strategy dedicated to optimizing the exploitation of the country’s phosphates. The file is among those examined as part of the interministerial meetings held at the Prime Minister’s office, recalls Mouhamadou Al Aminou Lo. Its contents have not yet been made public.

At the same time, the government is identifying a North-East and Diourbel-Louga industrial center dedicated to phosphates and fertilizers. The Matam phosphate and fertilizer industrial project, backed by a research center and a university, is among the major mining projects announced.

For historical players in the sector, this new architecture will certainly be scrutinized more closely. The government is finally reaffirming its commitment to the Extractive Industries Transparency Initiative (EITI). A way of giving content to announcements: more control, more transformation and an increased requirement for transparency around resources which remain instruments of economic sovereignty.

O.BA