Mali’s new law grants the government a 10% stake in mining projects, with an option to buy an additional 20% within two years. Credit: hyotographics/Shutterstock.

CEOs of gold mining companies have noted that Mali’s new mining code will require adjustments to encourage gold companies to invest in new projects in the country, reported Reuters.

On 8 August 2023, Mali introduced new legislation allowing the government to take a 10% stake in mining projects, with an option to purchase an additional 20% within the first two years of commercial production.

Related Company Profiles

View all

The revised code also hikes royalty taxes to 10.5% from around 6% and requires companies to sell a 35% share of new projects to Malian investors, an increase from the previous 20%.

The price of gold, which made up 80% of Mali’s exports in 2023, has reached record highs over the past year.

Mali is expected to receive CFA Fr750bn ($1.2bn) from mining companies in the first quarter of 2025 (Q1 2025) following extensive mining sector reforms, which include the implementation of the new mining code.

At the African Mining Indaba in Cape Town, CEOs of gold mining companies with operations in West Africa argued that the new rules render new investments in Mali uneconomical.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Mali Mines Ministry has not commented on the situation but previously cited the need for a fairer share of mining profits and fewer tax breaks.

Canadian miner Fortuna Mining CEO Jorge Ganoza indicated that Mali is no longer an attractive investment destination, with producers likely to turn to other West African countries with rich deposits, such as Guinea, Ivory Coast, Senegal and Burkina Faso, the report said.

Australian miner Resolute Mining, which experienced the arrest of its CEO over disagreements with the mining rules, stated that the new royalty tax would increase its all-in sustaining costs by around $250/oz at its Syama mine in Mali.

Another Canadian miner, Robex, is considering exiting Mali and focusing on Guinea, although it is struggling to find buyers for its Nampala mine.

Despite the challenges, some mining groups remain in discussions with Mali’s junta regarding the future of their operations and compliance with the new code.

Barrick’s CEO, Mark Bristow, acknowledged the difficulties in Mali but emphasised ongoing dialogue with the government over alleged unpaid taxes and the seizure of gold stocks.

Similarly, B2Gold announced plans to invest $10m (C$14.39m) in exploring Mali’s Fekola gold complex, following a settlement related to the 2023 mining code.