16.4 C
Belgrade
Supported byspot_img
spot_img

Mali adopts new mining code to raise gold concessions ownership

Member of Europium Groupspot_img
Supported byspot_img

Mali has passed a new mining code allowing the state to take up to 30 percent stakes in new mineral projects and collect more revenues from the vital industry.

Junta leader Assimi Goita signed the code into law on Monday (Aug. 28), his office announced on social media Tuesday (Aug. 29).

Mali is one of Africa’s leading gold producers.

Supported by

It is also boasts manganese and lithium — two minerals key to the global energy transition — though these have not been extensively explored.

Mali produced 72.2 tonnes of gold in 2022, including six tonnes by artisanal gold panners, then-mines minister, Lamine Seydou Traore, said in March.

Gold accounts for 25 percent of the national budget, 75 percent of export earnings and 10 percent of GDP, he added.

Mali’s mining sector is dominated by foreign companies, including the Canadian firms Barrick Gold and B2Gold, Australia’s Resolute Mining and the British Hummingbird Resources.

They have continued to operate despite political instability and an expanding jihadist insurgency.

Mali’s junta, which seized power in 2020, has made sovereignty a key priority.

Boosting the national budget

The mining code reform could boost the national budget by 500 billion CFA francs ($820 million), economy minister Alousseni Sanou said this month.

The new mines minister, Amadou Keita, said the state hoped the mining industry would eventually contribute to between 15 and 20 percent of GDP.

The reform allows the government to hold up to 10 percent equity in new projects with the option to buy an additional 20 percent during the first two years of commercial production.

And it allows the Malian private sector to hold up to five percent. The new code also removes tax exemptions for mining companies during operations.

According to the economy minister, exemptions on petroleum products and equipment represent about 60 billion CFA francs a year.

The junta had for months championed the proposed reform, pledging to make “gold shine for Malians”.

“Mali’s demand for higher stakes in mining projects… reflects a wider trend across the continent where resource-rich countries, impacted by the knock-on effects of global shocks, aim to increase their control over the mining sector,” Mucahid Durmaz, an analyst with Verisk Maplecroft, said in a note.

But, he added, the Malian government is “walking a tightrope” and must be “cautious not to scare away investors”.

 

Source: africanews

Supported byElevatePR Digital

Related News

Ensuring responsible mineral supply chains in the renewable energy transition

The shift towards renewable energy is heavily reliant on minerals like copper, cobalt, bauxite and lithium for technologies such as batteries, electric vehicles, and...

International Graphite Ltd advances key projects in Western Australia with Springdale drilling and Collie processing

International Graphite Ltd is making significant strides in advancing its graphite processing operations in Western Australia. The company is currently conducting a 10-hole diamond...

Uzbekistan’s bold move: Ambitious push to lead global rare earth mining

Uzbekistan's President Shavkat Mirziyoyev has underscored the importance of developing the country's rare-earth mining sector, positioning it as a top priority for his administration...

Strickland Metals embarks on extensive exploration drive at Rogozna gold project in Serbia

Strickland Metals has initiated a robust exploration drive at its Rogozna project in Serbia, aiming for extensive drilling totaling 60,000 meters. With two rigs...
Supported by
Supported by
Supported by
error: Content is protected !!