Gold miner to expand ore processing in Senegal


As the new company would be the sole professional ore-processing facility in Senegal, Dynacor sees strong demand for its reputable and knowledgeable service

MEETING PROCESSING DEMAND As the new company would be the sole professional ore-processing facility in Senegal, Dynacor sees strong demand for its reputable and knowledgeable service

Photo by Bloomberg

6th September 2019


Font size: - +

Canadian gold production company Dynacor Gold Mines has signed a letter of intent (LoI) with mining equipment provider KN Equipments and wealth fund the Sovereign Wealth Fund of Senegal for Strategic Investments (FONSIS) to begin the process of strategically expanding Dynacor’s business globally by forming a jointly owned company to operate in Senegal.

The new company would start by building an upgradeable ore-processing plant in Senegal. The initial plan is for a 100 t/d to 150 t/d facility with the design to double capacity to 300 t/d. Dynacor will operate the plant and own the majority of the company with 51% ownership. KN Equipments and FONSIS will own the balance at 25% and 24% respectively.

Subject to a seven-month due diligence period, which is to be completed before the end of this year, the terms of the LoI mean that Dynacor will provide the technical and legal teams to conduct a complete accounting of potential production sites, the total number of artisanal and small-scale mining (ASM) and all other pertinent data concerning the feasibility of this project.

The final decision to move ahead on the project will be on or before December 31 this year.

The budget to build the plant is about $10-million. The new company is to invest $4-million, of which Dynacor’s total share would amount to 51%, or $2.04-million, together with KN Equipments and FONSIS investing an additional $1.96-million. The balance of the $10-million is to be financed by local Senegalese banks.

“The new company would bring a logical combination of Dynacor’s ore processing leadership and over 20 years of experience together with KN Equipments’ presence in Senegal, a long-standing history of manufacturing milling processing equipment and the financial strength of FONSIS,” enthuses Dynacor president and CEO Jean Martineau.

He highlights this decision as part of the company’s strategy to become an internationally recognised ore-processing business servicing the ASM industry worldwide. He also states that the company sees the new low-risk project as an opportunity to enhance Dynacor’s growth and leadership role on a global scale.

“FONSIS plays an important role as it backs t he strategy of the Senegalese Ministry of Mines and Geology. This project will help formalise gold mining activities for small- and medium-size legal mines,” notes FONSIS executive VP Mamadou Mbaye.

“We look forward to partnering with Dynacor and FONSIS to expertly enhance the Senegal ASM industry by offering top-end service and superior value to Senegalese miners and their communities. As we have more than three years of providing manufacturing and mining maintenance service in Senegal, our company is quite well versed in the country’s ASM space and its demand for the new company and the value it will deliver,” comments KN Equipments president Robert Nieminen.

He notes that, “Dynacor, the world’s undisputed ASM ore-processing leader with a sterling track record, FONSIS, a sovereign fund with financial backing from the Republic of Senegal combined with our 60 years of experience in design and manufacturing of mill processing equipment will enable a smooth, speedy development path to opening the highly anticipated plant”.

Managing Community Relations

In November 2017, Dynacor visited Senegal to meet with the Senegalese government. The productive meetings encouraged Dynacor to follow up with a second visit in February 2018 and a technical team from Dynacor was sent to Senegal to evaluate the gold potential and ASM situation. During the site visit, the collection of many grab samples from several ASMs operating in the area was a vital step the technical team completed.

The local ASM community engaged with the team members and showed an interest in realising the financial and environmental benefits of making use of the Dynacor value-added ore-purchasing and processing advantage.

As the new company would be the sole professional ore-processing facility in the country, Dynacor sees strong demand for its reputable and knowledgeable service.

Independent analysis of the samples from international certification agency Bureau Veritas’ assay laboratory located in Abidjan, Côte d’Ivoire, confirmed Dynacor’s positive results at its Veta Dorada facility, in Peru.

The promising grades and metallurgical recovery rates, together with the supporting Senegalese government and involvement of the local ASM community, encouraged Dynacor to move forward on the LoI and the full due diligence programme.

Edited by Mia Breytenbach
Creamer Media Deputy Editor: Features



Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...


Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.172 0.206s - 93pq - 2rq
1: United States
Subscribe Now
2: United States