Investments of $400 million.. Fortuna Mining approaches the launch of Senegal's largest gold projects

Written by Ziad Abdel Fattah:

Canadian firm Fortuna Mining is nearing final approval for the development of the “Diamba Sud” gold project in SenegalIn a move that could bolster the country's position as a major destination for mining investments in West Africa, amid plans to inject investments approaching $400 million.

Jorge Ganoza, the company's CEO, told Reuters that the company expects to obtain final construction permits for the project within weeks, after Senegalese authorities approved the environmental and social impact assessment in a period not exceeding 9 months, a duration he described as short compared to similar procedures in other countries.

Janus clarified that the company aims to begin commercial gold production in 2028, reaching a maximum production capacity of approximately 230,000 ounces per year, making the project one of the most prominent new mining projects in the country.

Senegal seeks to expand gold production

Senegal is strengthening its presence in the gold mining sector, after its mining activities were historically linked to mineral sands and phosphates.

Despite having promising reserves, its annual gold production is still around 334,000 ounces, which is significantly lower than that of major producers in West Africa, such as Ghana and Mali.

The Senegalese market includes a number of global companies, including Endeavour Mining, the operator of the Sabodala-Massawa mine, alongside Moroccan company Managem, which manages the Bou-tout mine.

Political tensions did not affect investment

The CEO of Fortuna Mining confirmed that the recent political changes in Senegal, including ministerial reshuffles and tensions between President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko, have not affected the company's investment plans.

He added that the company had already started ordering key equipment for the project before making the final construction decision, with the aim of avoiding any potential delays in global supply chains for the mining industry.

Strong returns and plans for regional expansion

According to the project’s feasibility study, “Diamba Sud” is expected to generate an internal rate of return of approximately 60%, with a net present value of nearly $1 billion, based on a gold price of $3,500 per ounce.

The company also intends to invest more than $15 million in exploration activities within the project area, with expectations of increased returns if additional reserves are discovered.

Fortuna Mining's plans were not limited to its current project, as Januza revealed that the company is considering new acquisition and exploration opportunities in Senegal, as well as neighboring markets such as Côte d'Ivoire and Guinea, indicating the possibility of announcing new deals before the end of the year.

The company's CEO emphasized that Senegal has a significant opportunity to become a regional mining hub if it continues to provide a stable investment environment and maintain clarity in licensing policies and tax regulations, which is an essential element for attracting long-term investments in the sector.