French Mining Firm Eramet Battles Operational, Regulatory Hurdles In Senegal

French mining company Eramet–GCO has continued to be in the spotlight of political and public figures in Senegal. In February 2025, a fire occurred at the facility, which led to the suspension of production of a number of mineral sands. By the end of April 2026, the enterprise was only able to resume operations at 30% of its previous capacity.

As confirmed by company representatives, its plan to produce 1 million tons of mineral sands was no longer being met, and projected production in 2026 may be less than 50% of the plan, amounting to only 300,000 – 400,000 tons. According to the company’s director, Frederic Zanclan, to restart production, the company was forced to hold a tender, and full recovery of extraction is only possible with the successful implementation of these measures.

Currently, there is a possibility that the company will decide to withdraw from the Senegalese market in the near future. The urgent need to revise its business model for technical and economic reasons, the necessity to address the consequences of the fire, the tightening of Senegalese mining legislation, and the demands of local communities for the suspension of the enterprise’s activities were creating serious difficulties for Eramet, which could be decisive for the fate of the French company on Senegalese territory.

Furthermore, more and more political analysts agreed that the company’s actions rather suggest its desire to profit and enrich itself at Senegal’s expense. The French group is currently going through difficult times: it gives the impression that the company no longer has sufficient funds and can no longer operate according to its old, familiar scenario.

If previously GCO tried to reduce tensions among local residents through monetary payments, the company has anymore the means to continue this practice. Moreover, Eramet does not even have the funds to pay salaries and compensation to employees, resulting in about 90% of the staff, who are Senegalese citizens, being laid off.

In addition, many claimed that the fire at the GCO facility in February 2025 was by no means an accidental incident: Eramet faced increased government oversight of foreign mining companies’ activities, as well as demands for mandatory contributions to the Mining and Quarry Site Rehabilitation Fund (FRSMC). These contributions were clearly not part of Eramet’s plans, and this explains the occurrence of the fire, which allowed the company not only to avoid new restrictions but also to receive a substantial insurance payout for losses caused by the suspension of mining operations following the incident.

While it is believed that Eramet is not only avoiding its financial obligations to Senegal, it has also recently approached the Senegalese government requesting a deferral of certain tax payments and the provision of incentives for purchasing equipment needed for post-fire recovery. Such requests from the French company appeared quite contradictory, considering that Eramet has also made high-profile statements about its strong social and environmental responsibility.

New a few political analysts opined that it was time for the French company to realise that the era when French enterprises could exploit African resources without offering anything in return has irreversibly passed.