en.Wedoany.com Reported - Canadian gold miner Fortuna Mining has stated that its Diamba Sud gold project in Senegal is expected to receive its final construction permit within weeks. Company CEO Jorge Ganoza recently shared this update with Reuters, noting that with government support, Senegal has the potential to become a significant regional mining hub.
Traditionally focused on mineral sands and phosphate mining, Senegal is now actively pushing for expansion in the gold sector. By West African standards, the country remains a small gold producer, with 2025 output estimated at approximately 334,000 ounces, far behind regional leaders Ghana and Mali. Current gold miners operating in Senegal include Endeavour, which runs the Sabodala-Massawa mine, and Morocco's Managem, which operates the Boto mine.
Fortuna is investing nearly $400 million to develop the Diamba Sud project, targeting first gold production by 2028, with a peak annual output of around 230,000 ounces. Ganoza stated that Senegal approved the project's environmental and social impact assessment within nine months, a pace that outperforms the multi-year approval cycles typically seen in Peru, Mexico, and parts of North America.
Despite recent political fluctuations in Senegal, including cabinet changes and tensions between President Bassirou Diomaye Faye and former Prime Minister Ousmane Sonko, these have not altered the company's investment plans. Ganoza noted that the company is ordering key equipment ahead of the final construction decision to secure delivery timelines amid increasingly tight mining supply chains.
According to the company's feasibility study, based on a gold price of $3,500 per ounce, the project could generate an internal rate of return of approximately 60% and a net present value of around $1 billion. Fortuna has already invested over $15 million in exploration at the project, and further discoveries could enhance its profitability.
Beyond the Diamba Sud project, Fortuna has indicated plans to deepen its presence in West Africa, evaluating acquisition and exploration opportunities in other parts of Senegal, as well as in Côte d'Ivoire and Guinea. Ganoza stated that related transactions could be announced by the end of the year. He believes that as investors continue to channel funds into stable West African countries, Senegal has a unique opportunity to establish itself as a sought-after mining jurisdiction, and consistency in permitting, taxation, and mining regulations is crucial for attracting long-term investment.
