Mining sector: The State relies on industry to better regulate the exploitation of mineral resources

In committee, the Minister of Mines saw his budget rejected by parliamentarians. But beyond the circumstantial reactions to the current political context, a crucial issue was nevertheless raised during the debates: the phenomenon of illegal gold mining, which affects the east of the country with its attendant health, social, and environmental tragedies. In the 2027 draft budget for the Ministry of Mines and Geology, the allocation for managing illegal gold mining saw a significant increase despite the rejection.

Thus, between the identification of illegal gold miners, the revitalization of degraded sites and the mapping of the subsoil, the State has mobilized a total of nearly 6 billion additional funds.

Beyond the health, social and environmental consequences, illegal gold mining is also a scourge for Senegalese public finances, which benefit from no tax revenue and no traceability on these activities.

The budget law reveals that geological knowledge, including subsurface mapping, is allocated nearly 2 billion FCFA. A key pillar of the National Transformation Agenda, the inclusive and sustainable exploitation of mineral resources has garnered nearly 4 billion FCFA in the budget. In its explanatory report, the government announces it will pay significant attention to regulating artisanal gold mining, protecting the environment, and rehabilitating abandoned sites.

Within the framework of public-private partnerships, the government is focusing on supporting industrial players in the sector. Indeed, major mining companies, long committed to formalizing the sector, will continue to be partners of the government on this issue, particularly given recent news reports of mercury poisoning among the population from the use of mercury by some artisanal miners. For several years, industrial operators, such as Sabodala Gold Operations, have been among those involved in regulating artisanal gold mining, disseminating best practices to clean up the sector, while ensuring benefits for the many miners who earn an income from this activity.

In its Agenda 2050 for Senegal, the government plans to increase the share of wealth derived from its subsoil, particularly gold. Developing this resource requires massive investment from industrial groups to expand the sector and transform it into a high-value-added industry.