Mali has recovered 761 billion CFA francs ($1.2 billion) in arrears from mining companies.
Mali’s transitional military government launched a comprehensive audit of the country’s mining sector in early 2023 and issued new guidelines for operating in the industry. The revised mining law increased the government’s ownership stake in mining companies and provided an initial estimate of between 300 billion and 600 billion West African francs in lost tax revenue.
The law and mining reforms also led to a two-year dispute with Barrick Gold, the country’s largest gold producer, which was resolved in November.
Mali’s Minister of Economy and Mines, Alouseni Sanou, announced tax revenue of 761 billion francs ($1.2 billion) from outstanding debts, but did not specify whether this included a recent 244 billion francs settlement with the Canadian company. Other gold mining companies, including B2Gold, Allied Gold, Resolve Mining, Andover Mining, and lithium producers such as Ganfeng and Kodal, have also reached agreements with the Bamako government regarding outstanding debts under the new regulations.
Mineral-rich countries in West Africa are reforming their mining sectors and implementing new policies to improve the investment climate for international companies. The ongoing fiscal reforms in the sector represent a strategic move to increase state control and maximize domestic profits in the mining sector, challenging traditional patterns of mining in Africa.
The scale of recent reforms in mining policy goes beyond simple monetary and fiscal changes, and includes sophisticated auditing mechanisms, enhanced government participation frameworks, and comprehensive local requirements. Analysts believe that these developments are indicative of broader changes in the exercise of national sovereignty over mineral resources, with consequences that extend beyond the borders of these countries.
The three countries of Mali, Niger, and Burkina Faso in the “Sahel” region of Africa, which have seen military-backed governments rise to power in recent years and have formed the “Sahel Coalition,” have reduced their relations with the West, especially former colonial power France, and strengthened ties with Russia.
This is while the country of Mali in the western Sahel region of Africa has experienced three military coups since April 2012, and now, with the ongoing siege of the country’s capital, Bamako, by militias and the fuel crisis in the city, some security analysts have warned of the possibility of another coup in Mali. Mali experienced two military coups in August 2020 and then again in June 2011. Mali was previously the scene of a military coup in March 2012.