Canadian gold processor Dynacor Group has started processing ore at its Galam pilot plant in southeastern Senegal, marking the company’s first operational step into Africa and a key test of its plan to formalise artisanal and small-scale gold mining across the continent.
The company announced that the facility, located in Senegal’s gold-rich Kédougou region, is more than 95% complete and remains on track to achieve its first gold pour in August.
Commissioning of the laboratory and front-end processing plant has already been completed, while testing continues in the grinding, leaching, refining and Merrill-Crowe circuits that are used to recover gold from processed ore.
Dynacor has also built an initial stockpile of gold-bearing ore purchased from local suppliers and plans to expand procurement from additional supplier groups next month.
“We are excited to highlight Galam’s move from construction to commissioning. This is a significant achievement and a testament to the experience of the Dynacor team,” said Daniel Misiano, President and Chief Executive Officer of Dynacor.
“When fully ramped-up, Galam will act as a blueprint for future commercial plants in Africa, which is expected to be the key driver of our expansion strategy,” he added.
Unlike traditional mining companies that develop and operate their own mines, Dynacor’s business model revolves around purchasing ore from formalised artisanal and small-scale miners, processing it and selling the resulting gold.
The company has successfully deployed the model at its Veta Dorada plant in Peru and is now seeking to replicate that success in West Africa.
The Galam facility has a processing capacity of up to 50 tonnes of ore per day. Although modest by industrial mining standards, the plant is expected to serve as a pilot project to determine whether Dynacor can establish a sustainable ore-purchasing and processing network in Africa’s largely informal artisanal mining sector.
The timing of the investment is significant, as African governments increasingly seek to bring artisanal gold production and trade under formal oversight. The sector supports millions of livelihoods across the continent but remains difficult to regulate, with large volumes of gold produced and traded outside official channels.
According to development organisation SWISSAID, at least 435 tonnes of gold worth approximately US$31 billion left Africa undeclared in 2022, with more than 70% of artisanal gold production not officially recorded.
In Senegal alone, an estimated 36 to 41 tonnes of artisanal gold, valued between US$2.38 billion and US$2.71 billion, were smuggled out of the country between 2013 and 2022.
By purchasing ore through a documented industrial supply chain, Dynacor hopes to improve traceability, support formalisation of the sector and provide governments with a clearer basis for collecting taxes and royalties.
However, analysts note that the company’s success will depend on its ability to attract artisanal miners away from informal traders who often offer faster payments and fewer compliance requirements.
Beyond Senegal, Dynacor is also rehabilitating its Svetlana processing plant in Ecuador, with work about 40% complete and a restart targeted for the fourth quarter of 2026.
The Senegal project represents more than the commissioning of a small processing plant. For Dynacor, it is the first major test of whether its Peruvian model can be scaled across Africa and whether formal processing can compete successfully in one of the world’s largest informal gold economies.
The article is based on company statements and reports from multiple industry and business publications covering Dynacor’s Senegal project and expansion strategy.
