Mali recently made headlines after announcing that it received 500 billion CFA francs in December, thanks to agreements with mining corporations. The country’s finance minister, Alousseni Sanou, shared this news with the parliament, stating that the entire sum would be paid by March 31. This development comes after Mali implemented stricter regulations on mining companies operating within its borders, leading to a significant restructuring of the mining industry.
The decision to tighten regulations was prompted by a substantial deficit of 300 billion to 600 billion CFA francs in state revenue. As a result, a new mining code was adopted, requiring mining companies to pay substantial amounts in back taxes and dividends. For instance, Australia’s Resolute Mining Ltd. agreed to pay around $160 million to resolve a tax dispute, while B2Gold Corp. and Allied Gold Corp. also reached settlements for their respective mines.
Despite these agreements, Mali claimed that Barrick, a mining company, owed over $512 million in unpaid profits and taxes. Barrick denied this allegation, but tensions escalated when an agreement between the parties collapsed, leading to the detention of four Barrick executives in November.
Looking ahead, Mali plans to further increase state revenue by expanding its ownership in producing assets from 20% to 35% under new mining legislation enacted in 2023. Additionally, the country will collect 7.5% of sales if gold prices surpass $1,500 per ounce. These measures aim to enhance Mali’s financial stability and ensure fair compensation for its natural resources.
In conclusion, Mali’s recent financial gains from mining agreements demonstrate the country’s commitment to regulating the industry and maximizing revenue. By holding mining companies accountable and seeking fair compensation, Mali aims to strengthen its economy and secure a sustainable future for its citizens.
