Mali to review and renegotiate mining contracts

Mali is set to review and renegotiate mining contracts. Council of ministers made the announcement and said they plan to repatriate the money earned from gold exports that was lost on deals, and adopt environmental codes for the mining sector.

The move follows an audit which noted that the state was not receiving its fair share of revenue from the sector. Gold is by far Mali’s most important export, comprising more than 80% of total exports and dominates the country’s natural resource sector. It is also is at least the fourth largest gold producer in Africa, with some reports placing it third.

Mining in Mali

Gold panning is estimated to constitute approximately four to 26 tons.  More than two million people, representing more than ten percent of the population, depend on the mining sector for income. Among the companies operating in Mali are Barrick Gold Corporation (Canadian), Endeavour Mining (British), Resolute Mining (Australian), and Hummingbird Resources (British).

In addition to gold, Mali has other mineral prospects, as the majority of the territory remains largely unexplored.  The Ministry of Mines estimates that the country has 800 tons of gold deposits, two million tons of iron ore, five thousand tons of uranium, 20 million tons of manganese, four million tons of lithium, and ten million tons of limestone. The council said the action plan will be implemented via a participatory approach, including the mining companies themselves.