Mali inks mining code into law
The government of Mali through the interim President, Assimi Goita, has inked a new mining code into law. The move aims to increase government ownership of gold concessions in the country. The country is currently facing a shortfall in production revenues.
The new mining code was adopted by the parliament earlier in the month before being signed into law by the President. It will allow the government and local investors to take ownership stakes as high as 35% in mining projects. This is an increase from the previous levels of 20%. Mali’s Finance Minister, Alousseni Sanou, stated that an audit of the country’s mining sector revealed that the state was missing a significant amount of revenue (CFA Fr300bn–600bn or $497m–$995m). The new code is designed to help recover this lost revenue.
Mining in Mali
The code will address issues such as mining companies taking their gold ore to tax-exempt mines for processing, resulting in revenue loss. The newly appointed Mining Minister, Amadou Keita, mentioned that greater attention will be given to how mining titles are issued. Mining titles will now require signatures from several ministers (finance, mining, environment, etc.) to ensure transparency and inclusiveness in the process.
The mining industry of Mali is dominated by gold extraction but also produces diamonds, rocksalt, phosphates, semi precious stones, bauxite, iron ore, and manganese. The importance of mining and production of raw minerals has changed throughout time and has involved many foreign stakeholders, most notably France, the former Soviet Union, and South Africa. Gold, followed by cotton, is the top export item, making it a large contributor to the country’s economy. Mineral extraction in the country is done both via industrial mining and artisanal mining, and both methods of production have had profound impacts on the economy, sociocultural landscape, and environment.
