(Ecofin Agency) - Canadian firm Dynacor plans to invest in artisanal gold mining in Senegal. The sector employs tens of thousands of people and produces 7 tonnes of gold annually.

Dynacor announced on October 11 that it will build a pilot plant to process gold ore sourced from artisanal miners. This facility will help Dynacor evaluate the potential for larger operations in the country.

The plant will be located in the Kédougou region, which hosts most of Senegal's artisanal and small-scale mining sites. It is expected to begin operations in the first half of 2025 and will have a processing capacity of 50 tonnes per day. The site is on a 50-hectare mining concession acquired from a local company and has received government approval for gold mining.

Dynacor aims to play a significant role in formalizing the artisanal mining sector in Senegal. Artisanal mining contributes over a third of Senegal's gold production, but it often invoves harmful extraction methods. Last August, the government suspended mining along the Falémé River until June 2027 to protect the environment.

Dynacor has attracted interest from local companies wanting to supply ore to its processing plant. If the pilot project succeeds, it could lead to larger gold production facilities in Senegal. The company is also conducting environmental impact studies, which are expected to be completed by December.

Foreign companies are already active in Senegal's industrial mining sector, including Australia’s Resolute at the Mako gold mine and Endeavour Mining at the Sabodala-Massawa complex.

Emiliano Tossou