Mali to receive $1.2bn from mining sector in first quarter
Mali is on track to receive $1.2 billion from mining companies in the first quarter of this year, following substantial reforms to its mining sector.
Finance Minister Alousseni Sanou confirmed that Mali had already collected 500 billion CFA francs by late December after discussions with miners. The remaining funds are expected to be received by March 31, according to Sanou’s remarks to the National Transition Council.
Mali introduced a mining code in 2023, raising the government’s stake in producing assets from 20% to 35%. The code also includes a 7.5% royalty on sales if gold prices exceed $1,500 per ounce. An audit revealed a shortfall of 300–600 billion CFA francs in state revenue, leading to demands for back taxes and dividends.
Economic stability
Resolute Mining Ltd. paid approximately $160 million in taxes following the detention of its CEO in November 2023. B2Gold Corp. and Allied Gold Corp. reached new agreements, including settlement payments for their Fekola and Sadiola mines.
Mali’s state and domestic entities expanded their stakes in mining operations, further boosting expected revenues. Mali’s reforms demonstrate its push for greater control over its natural resources and higher state revenue. The evolving relationship between the country and its mining partners will be critical for the sector’s future and broader economic stability.
Mali’s mining industry is dominated by gold, but the country also produces other minerals such as gold, diamonds, rocksalt, phosphates, semi-precious stones, bauxite, iron ore, and manganese. The country is Africa’s third largest gold producer and the 13th largest in the world. In 2021, registered companies produced 63 tons of gold, while artisanal production was estimated at 6 tons. Gold accounts for 25% of Mali’s national budget, 75% of export earnings, and 10% of GDP.
