Mali’s interim President Assimi Goita has signed a new mining code that allows the government –which is military-led– to raise its ownership of gold concessions to 35 per cent.
The president signed the code and announced it via state television on Monday which allows the state and local investors to receive as much as 15 per cent more than the current concessions ownership now sitting at 20 per cent.
While it wasn’t clear if this would impact the current projects, Reuters reported that a mining ministry official said last week that this would depend on the decrees, which haven’t been published yet.
On Monday night, Mali’s Finance Minister Alousseni Sanou revealed that a review of the mining industry indicated the state was short of 300 to 600 billion CFA francs ($497 million to $995 million), funds that the government plans to recoup.
“When we go into negotiations with the companies, it is possible that we will obtain 300 to 400 billion,” he said.
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Mining Minister Amadou Keita said that the government has incurred losses due to mining firms diverting their gold ore to tax-free mines for processing. He added that the updated regulations will aim to curb this practice.
Goita led coups in 2020 and 2021, toppling two presidents due to dissatisfaction with their management of an Islamist insurgency. However, the situation has deteriorated further under his military regime. He has pledged to hold elections and transfer authority back to civilian leadership by 2024.
Companies operating in Mali include Barrick Gold Corp. (TSX: ABX) (NYSE: GOLD), B2Gold Corp (NSX: B2G)(NYSE: BTG)(TSX: BTO), Resolute Mining (ASX: RSG) and Hummingbird Resources (LON:HUM).
