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Canadian miner Fortuna Mining is moving ahead with one of its biggest African growth projects after a feasibility study confirmed the strong economics of its Diamba Sud gold project in Senegal. The project stands out at a time when several African countries are tightening control over their mineral sectors.
The study values the open-pit project at an after-tax net present value of $1 billion, with an internal rate of return of 60% and a capital payback period of just one year. Those figures are based on a gold price of $3,500 per ounce.
Diamba Sud is expected to produce an average of 158,000 ounces of gold a year during its first four years, before averaging 116,000 ounces over its 9.4-year mine life. Fortuna said the project holds 1.15 million ounces of probable gold reserves.
The company estimates all-in sustaining costs at $1,056 per ounce in the first four years and $1,332 per ounce over the life of the mine. That makes Diamba Sud Fortuna’s lowest-cost operation and a central part of its growth plan.
Fortuna has already approved $73 million for early works, including site infrastructure and engineering. First gold production is targeted before the end of the second quarter of 2028, subject to final permitting and an investment decision.
The project is also important to Fortuna’s broader output strategy. The company wants to raise annual gold production by about 60% to more than 500,000 ounces by 2028, alongside expansion at its Séguéla mine in Côte d’Ivoire.
For Senegal, the project represents an estimated $397.5 million investment that could create jobs, boost export earnings and generate tax and royalty income. The country has tried to maintain investor confidence while keeping stronger oversight of its mining sector.
That balance has helped Senegal remain attractive even as Mali, Burkina Faso, Niger and Ghana have all moved to exert greater control over mineral wealth. Diamba Sud adds another sign that Senegal remains one of West Africa’s steadier mining destinations.
