Key points:
- Mali’s gold production fell 23 percent to 51 metric tons
- Disputes with Barrick Gold impacted output
- New mining code creates investment challenges
MALI’S industrial gold production suffered a sharp decline of 23 percent in 2024, dropping to 51 metric tons from 66.5 tons the previous year, according to a report by the country’s mines ministry, as cited by Reuters. This marks the first time in over three years that Mali’s gold output has fallen below 60 tons, raising concerns about the future of one of Africa’s top gold-producing nations.
Disputes with major miners impact production
Mali, home to major gold mining operations run by international firms such as Barrick Gold, B2Gold Corp, Resolute Mining, and Hummingbird Resources, has been embroiled in disputes that have significantly disrupted production. The ministry’s report notably excludes Barrick Gold’s December output due to ongoing tensions with Mali’s military-led government over a new mining law introduced in 2023.
The conflict escalated when Malian authorities seized Barrick’s gold reserves by helicopter last month, prompting the company to suspend operations at its Loulo-Gounkoto mine. Furthermore, four Barrick employees have been detained since November on charges including money laundering and terrorism financing, allegations the company firmly denies.
New mining code raises concerns
At the heart of the crisis is Mali’s new mining code, which increases taxes and mandates the government to acquire larger stakes in mining assets. Industry executives told Reuters that these regulations have made it uneconomical to invest in new projects or purchase existing operations within Mali.
The government, however, defends the law, arguing that mining companies have failed to pay their fair share of taxes. An official from the mines ministry acknowledged to Reuters that the government’s conflict with key mining firms has contributed to the production decline, citing a ‘crisis of confidence’ within the sector.
Production figures and future outlook
Despite the setbacks, Barrick Gold remains Mali’s largest gold producer, contributing 19.4 tons in 2024, excluding its December output. B2Gold followed with 13.7 tons, while Resolute Mining produced 7.2 tons. The ministry’s data also notes that artisanal mining accounted for an estimated 6 tons of gold.
If Barrick had met its December forecast of 1.7 tons, Mali’s total production for 2024 would have reached approximately 52.7 tons, according to ministry estimates. Including artisanal output, the country’s total gold production for the year is expected to hit around 58.7 tons.
Economic implications for Mali
Gold is a critical pillar of Mali’s economy, contributing significantly to government revenue and export earnings. The current downturn threatens not only the mining sector but also Mali’s broader economic stability. The strengthening US dollar and global market fluctuations further compound the challenges faced by Mali’s resource-dependent economy.
Industry experts warn that unless the government can resolve its disputes with mining companies and create a more investment-friendly environment, Mali risks long-term damage to its mining industry—a sector that has historically driven much of the country’s economic growth.
Mali’s gold production decline highlights the delicate balance between resource nationalism and economic sustainability. As tensions between the government and mining companies persist, the future of Mali’s gold sector hangs in the balance, with potential ripple effects across the West African economy.
