Canadian mining company B2Gold is moving forward with its plans to invest $10m (C$14.39m) in exploration at the Fekola gold complex in Mali, reported Reuters.
The Fekola gold complex features a producing mine and ongoing exploration activities.
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The decision follows a settlement with the Malian Government over its 2023 mining code, which has reduced the risk of disruption.
The new mining code, introduced in August 2023, increases the state’s share of mining revenues and removes tax exemptions for mining companies.
B2Gold was among the first companies to negotiate a settlement with Mali regarding the new code.
The company resolved an income tax demand in September last year and agreed to align some of its exploration activities with the new regulations.
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By GlobalDataB2Gold CEO Clive Johnson said: “From a B2Gold perspective, we have seen a reduction in risk since the signing of our settlement agreement.”
Malian officials have acted against companies that have not complied with the new code, detaining and arresting employees.
Arrest warrants were issued by the government for Mark Bristow, the CEO of Barrick Gold, which is said to be the biggest investor in Mali.
Mali recently seized around $245m of gold from Barrick’s Loulo-Gounkoto mine, leading Barrick to suspend its operations.
Expressing confidence, Johnson said that the company does not foresee any efforts by the government to detain its managers in Mali.
“We have expatriate employees that move in and out of the country regularly, including some of the mine management, so there is no reason to think that any detention would ever be contemplated as it relates to B2Gold,” Johnson added.
In a related development, Hummingbird Resources reached a $16.4m (£13.31m) agreement with Mali’s military government this month, securing the right to operate the Yanfolila gold mine in accordance with the new mining code.
The agreement, signed by Hummingbird’s subsidiary Société des Mines de Komana and a government commission, addresses audit concerns.
It also establishes a framework for the mine’s continued operations and future development.
