Deal #8619

the Senegalese government encouraged the development of phosphate mining in the Matam region for the Senegalese agriculture’s consumption of fertilizer needs. The Société d’études et de réalisation des phosphates de Matam (SERPM) was granted an exploitation permit issued by a ministerial order on May 29, 2008, for a period of three years. This concession concerned the Southwest Lobe perimeter of Ndendory. For the exploitation of the deposit, the SERPM resorted to the services of the company Tracto Services Equipements, owned by the Senegalese businessman Cheick Amar who in May 2008 obtained 388 billion CFA francs investment (700 millions of dollars) from an anonymous consortium with US, Lebanese, Egyptian and Canadian capital (1). The production of natural phosphates increased from 20,000 tons in 2008 to 25,000 tons in 2009. SERPM and its partner Afcor built a modular granulator plant for the treatment of the phosphates. In 2012, a contractual dispute led Afcor to sue SERPM (2). Originally 51% owned by the Senegalese state, Cheick Amar gradually took control of the SERPM shares. This acquisition is opaque because there was no open tenders call, as required by Article 80 of the Code des Marches Publics (3). In 2011, a new exploitation concession was awarded to SERPM, on the perimeter of Ndiendouri-Ouali Diala, commonly known as the phosphates de Matam, in the department of Kanel, covering a total area of 661 km2. The concession has a validity of 25 years. The two deposits’ reserves of Ndiendouri and Ouali Diala are respectively estimated at 30 and 12 million tons. Annual production of fine phosphates is 1.5 million tons. SERPM became the Société minière de la Vallée du fleuve Sénégal (SOMIVA), in which the Senegalese state holds 10% of the capital.