A mid-year report released by Senegal’s National Committee of the Extractive Industries Transparency Initiative (CN-ITIE) reveals that the country’s extractive sector generated a substantial 236.59 billion CFA francs ($391.49 million) in the first half of 2024.
The mining sector emerged as the dominant contributor, accounting for nearly 80 percent of this total revenue. Notably, the report also indicates that phosphoric acid and gold were the primary drivers of the sector’s exports.
The CN-ITIE’s reconciliation report for the first six months of fiscal year 2024 provides a comprehensive analysis of the extractive industry’s economic impact. This report, a product of meticulous data collection, financial reconciliation, and discrepancy investigation, offers a detailed overview of the sector’s contribution to Senegal’s national economy.
Key findings from the report indicate that the extractive sector generated a total of 236.59 billion CFA francs in revenue during the first half of 2024, encompassing both social and environmental payments. Of this amount, a significant 225.49 billion CFA francs was directly allocated to the state budget.
The mining sector was the primary revenue generator, contributing 187.35 billion CFA francs, which represents 79.19 percent of the total extractive revenues. This figure already accounts for 56.36 percent of the total mining sector revenue generated for the entire 2023 fiscal year, highlighting its strong performance.
The hydrocarbons sector contributed 45.79 billion CFA francs, representing 19.36 percent of the total revenue. This performance marks a significant increase of 15.14 billion CFA francs compared to the entire 2023 fiscal year, when the sector generated 30.65 billion CFA francs. This surge is largely attributed to exceptional payments made by Woodside Energy Senegal, including 3 billion CFA francs for a “Customs Audit 2016-2021” and 21.75 billion CFA francs for “Payment of Import Duties.”
Production highlights: Gold and construction materials lead mining
In the mining sector, gold production reached 106,579 troy ounces, valued at an estimated 154.46 billion CFA francs. Cement production was the second highest at 2,527,640 tonnes, valued at 120.56 billion CFA francs. Other significant mining productions included phosphoric acid (240,475 tonnes, 85.15 billion CFA francs), clinker (1,494,624 tonnes, 61.19 billion CFA francs), ilmenite (254,041 tonnes, 42.16 billion CFA francs), and phosphate (932,008 tonnes, 32.99 billion CFA francs). In the hydrocarbons sector, production remained focused on natural gas from the Gadiaga/Sadiartou areas, totaling 1,525,544 normal cubic meters (Nm³) valued at 251.71 million CFA francs.
Exports dominated by phosphoric acid and gold
Exports from the extractive sector reached 468.42 billion CFA francs (775.12 million USD) in the first half of 2024. Phosphoric acid was the top export, with 242,468 tonnes exported at a value of 140.72 billion CFA francs, representing 30.04% of the sector’s total exports. Gold followed closely, with 102,925 troy ounces exported, valued at 137.22 billion CFA francs (29.29 percent of exports). Cement rounded out the top three, with 1,138,190 tonnes exported at a value of 54.70 billion CFA francs. Workforce data from 11 of the 26 reporting companies showed a total of 1,773 employees in the first half of 2024, with Senegalese nationals comprising 92 percent of this workforce, indicating a strong local presence within the sector. The total reported payroll amounted to 19.78 billion CFA francs, with 18.99 billion allocated to the mining sector and 0.78 billion to the hydrocarbons sector.
Social spending focused on education and community funds
Extracting companies reported 2.57 billion CFA francs in social spending during the first half of 2024, with 1.77 billion CFA francs representing mandatory payments and 797 million CFA francs in voluntary contributions. In the mining sector, Sabodala Gold Operations (SGO) was the largest contributor, with 906.94 million CFA francs in mandatory social spending, primarily directed towards social funds for surrounding communities, which financed road construction (like the Bembou Road 2024) and various local infrastructure projects. Education was the primary beneficiary of social spending, receiving 32.47 percent of mandatory payments and 10.88 percent of voluntary payments. In the hydrocarbons sector, Total E&P Senegal and Woodside Energy Senegal were the largest contributors to social spending, with 362.55 million CFA francs and 170.87 million CFA francs, respectively. Deferred environmental expenditures reached 972.10 million CFA francs in the first half of 2024, with the Senegal Chemical Industries (ICS) being the main contributor (880.32 million CFA francs), primarily for compensation related to village relocation within their mining area. Environmental taxes paid by extractive companies totaled 173.62 million CFA francs, with Grande Cote Operations and SOCOCIM being the main contributors.
Local content shows positive trend
The report also highlighted the growing impact of the extractive sector on the local economy through purchases from national suppliers. Of a total transaction volume of 862.82 billion CFA francs, 342 billion CFA francs (39.64 percent) were with local suppliers. In the mining sector, local transactions reached 193.90 billion CFA francs, with SOCOCIM, SGO, and ICS being the main contributors. In the hydrocarbons sector, local transactions amounted to 148.10 billion CFA francs, with Woodside Energy Senegal leading with 144.73 billion CFA francs in local purchases.
This biannual report, a key initiative of the EITI National Committee, aims to provide the public with timely and relevant information on Senegal’s extractive sector, adhering to the principles of transparency and good governance promoted by the Extractive Industries Transparency Initiative.
ARD/te/fss/abj/APA