MALI’S interim President, Assimi Goita, has given his approval to a new mining code aimed at bolstering the military-led government’s control over gold conc
essions and rectifying significant production revenue deficits. The freshly enacted code, broadcasted on state television late on Monday, introduces provisions allowing both the state and local investors to secure ownership stakes as high as 35 percent in mining ventures, an increase from the previous threshold of 20 percent. The new code holds the potential to more than double the mining sector’s contribution to the country’s gross domestic product (GDP), reaching approximately 20 percent, according to the government’s projections.
While the implications of the new code on existing mining projects remain uncertain, a mining ministry official noted last week that its impact would hinge on forthcoming
implementing decrees, which have yet to be disclosed.
Mali stands among Africa’s leading gold producers, hosting mining companies such as Barrick Gold, Resolute Mining, and Hummingbird Resources.
Mali’s Finance Minister, Alousseni Sanou, stated on Monday evening that a mining sector audit unveiled a substantial revenue shortfall, ranging from CFA300bn to CFA600bn (equivalent to $497 million to $995 million), which the government intends to recover. Sanou highlighted, ‘The shortfall is around CFA300 to 600 billion. So if the facts are established, it will be a question of re-negotiating what is renegotiable and recovering what is recoverable. When we go into negotiations with the companies, it is possible that we will obtain 300 to 400 billion.’
Mining Minister Amadou Keita emphasised that certain losses incurred by the state were due to mining companies transporting their gold ore to tax-exempt mines for processing. The new code aims to curtail such practices while simultaneously focusing on improved procedures for mining title issuance. ‘From now on, for the sake of transparency and inclusiveness, mining titles will be signed by several ministers (finance, mining, environment, etc.),’ Keita announced on state television.
President Goita, who orchestrated coups in 2020 and 2021 due to dissatisfaction with the handling of an Islamist insurgency, has committed to organising elections and reinstating civilian governance by 2024. The implementation of the new mining code signifies an important step toward addressing revenue disparities and enhancing state participation in Mali’s gold mining sector.
