Senegal is not dependent on extractive industries, with extractive revenues accounting for less 2% of government revenues. However Senegal it is a leading producer of phosphates, with an annual production of 2.6 million tonnes in 2017. In parallel Senegal produces a modest, but growing, quantity of gold, natural gas, and construction materials. It holds important reserves of gold, iron ore and marble. Social tensions have arisen around community relations, subnational revenue transfers and environmental protection.

In addition to the national EITI multi-stakeholder group, Parliamentarians  established a Parliamentary Network on Transparency in 2014 to use EITI to improve transparency and public understanding of the management of natural resources.

The three main taxes and fees imposed on companies operating in the mining sector include Value-Added Tax (VAT), royalties and salary withholding taxes on mining and quarrying. In the oil and gas sector, the main taxes and levies include withholding tax on non-commercial profit, proceeds from the state's share of gas production and salary withholding taxes. The Directorate of Tax and Lands is the main body responsible for collecting and managing taxes paid to the central government, while state-owned oil company PETROSEN collects proceeds from the sale of the state’s share of oil and gas production. The government passed a new Mining Code on 8 November 2016, including an article (95) requiring mining companies to participate in EITI reporting. 

The government’s policy is to support contract disclosure, with ten oil and gas production-sharing contracts and 27 mining contracts published online in October 2016. Once signed, all oil and gas production-sharing contracts are required to be published in the Official Journal of the Republic.

Licenses 

Mining licenses and oil and gas production-sharing contracts (PSCs) are awarded on a ‘first come first served’ basis. Mining licenses are awarded by the Directorate of Mines and Geology of the Ministry of Mines and Industry, while PSCs are concluded with PETROSEN on no-objection from the Ministry of Energy.

Senegal's 2014, 2015, and 2016 EITI Reports attempted to collect beneficial ownership information directly from companies. 

The Government of Senegal clarified its policy on beneficial ownership disclosure at the UK Anti-Corruption Conference in London on 12 May 2016, committing itself to disclosing the ultimate beneficial ownership of all companies active in their jurisdiction. While the 2016 EITI Report does not explicitly comment on this government commitment to beneficial ownership disclosure, it does provide an overview of relevant provisions (on affiliated entities) in the 1998 Petroleum Code and confirms the MSG’s definition of beneficial ownership, in line with the UEMOA Anti-Money Laundering Directive (25% threshold). 

The MSG has established a dedicated working group and preparations for a BO study with a view to proposing legal reforms finalized in December 2017. The MSG published its three-year roadmap on beneficial ownership disclosure by January 2020 in December 2016. The roadmap covers the period January 2017 to January 2020. It includes the identification of beneficial ownership champions, the publication of legislation on beneficial ownership as well as the creation of a beneficial ownership register.

Senegal is one of the world’s leading producer of phosphate rock, although it also produces significant quantities of gold and industrial limestone. The country is also a small producer of natural gas, although it expects output of oil and gas to grow following significant discoveries offshore in 2015.