Keypoints:
- Endeavour, Faboula and Bagama sign Mali’s revised mining code
- New rules boost state share and taxes on gold projects
- Barrick Gold remains in arbitration over asset seizure
THREE gold producers, including London-listed Endeavour Mining, have signed Mali’s new mining code, agreeing to revised terms that give the state greater control over the country’s top export industry, Reuters reported.
New rules tighten state grip
The code, introduced in August 2023 by Mali’s military-led government, raises tax obligations and increases state stakes in mining ventures. The changes triggered a 23 per cent slump in gold production last year, dropping output to 51 tonnes as companies slowed investment amid uncertainty.
Early adopters of the deal
The memorandum of understanding covers three operators: Somika SA (80 per cent owned by Endeavour), Faboula Gold and Bagama Mining, whose combined output represents a small fraction of Mali’s gold sector. Somika director Abdoul Aziz said construction at its project would begin six months after finalising the deal, with first production expected in 18 months, according to Reuters.
Industry stalemate far from over
While the signing marks a breakthrough in stalled talks, larger producers, including Barrick Gold, remain locked in disputes with Mali over the new regime. Earlier this month, authorities seized control of Barrick’s Loulo-Gounkoto complex, airlifting gold reserves in a dramatic escalation that deepened investor unease. Barrick is pursuing international arbitration to challenge the code and recover assets.
Analysts say the partial deal signals that some firms may adapt to Mali’s tougher stance, but the broader standoff highlights the risks foreign investors face as resource nationalism reshapes West Africa’s mining landscape.
