The Senegalese government has secured a major victory in its drive to assert economic sovereignty over its mineral resources, forcing Grande Côte Opérations (GCO), a subsidiary of the French mining group Eramet, to distribute dividends for the first time since its operations began.
The standoff, which centred on unpaid mining royalties, had led the government to block GCO’s general assembly, halting decision-making at the zircon-producing company based in Diogo, in the Thiès region. GCO, a key player in the global mineral sands market, has long been a strategic asset for Senegal.
After weeks of negotiations led by the Société des Mines du Sénégal (SOMISEN SA) and supported by the Ministry of Finance, the deadlock was resolved on 29 August 2025 when shareholders adopted a resolution to release the funds.
For the 2024 financial year, GCO posted a net profit of 14.4 billion CFA francs. Of this, 5 billion CFA francs was allocated for dividend payments. As a 10% shareholder, the State of Senegal will receive 500 million CFA francs gross—450 million after tax. With the inclusion of the Income Tax on Securities (IRVM) levied on all dividends, the Public Treasury stands to collect nearly 1 billion CFA francs.
“This first distribution represents a historic step forward for the State’s mining portfolio,” SOMISEN stated, highlighting the government’s ambition to secure a fairer share of wealth generated by natural resource exploitation.
The episode underscores a wider trend in Senegal’s extractive sector, where record tax revenues—41.425 billion CFA francs in 2025, more than double the average of the past four years—reflect a deliberate push for transparency and better governance.
For President Macky Sall’s administration, this move not only strengthens public finances but also signals a clear intention to tighten oversight of foreign operators and ensure that Senegal’s mining wealth benefits its people.
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