Mali to Get $1.2B from Mining Companies After Sector Reforms

Daba Finance/Mali Targets $1.2B from Mining Companies After Sector Reforms

AFRICAN BUSINESS AND ECONOMYJanuary 14, 2025 at 10:17 AM UTC

TLDR

Mali is expected to secure CFA Fr750 billion ($1.2 billion) in revenue from mining companies in the first quarter of 2025
The new regulations require companies to settle unpaid taxes and dividends, following an audit that revealed a revenue shortfall for the state
The revised mining code has also increased state and domestic group ownership in mining assets from 20% to 35%

Mali is expected to secure CFA Fr750 billion ($1.2 billion) in revenue from mining companies in the first quarter of 2025, according to Finance Minister Alousseni Sanou. This comes after extensive reforms aimed at boosting state revenue from the mining sector, including a new mining code introduced in 2023.

The new regulations require companies to settle unpaid taxes and dividends, following an audit that revealed a revenue shortfall for the state of CFA Fr300 billion to CFA Fr600 billion. In December 2024, Mali received CFA Fr500 billion in settlements from mining firms.

The revised mining code has also increased state and domestic group ownership in mining assets from 20% to 35% and introduced a royalty of 7.5% on gold sales if prices exceed $1,500 per ounce.

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Points clés à retenir

Mali’s reforms reflect its push for greater control over mining revenues amid growing fiscal challenges. The stricter regulations have prompted major settlements from companies like Resolute Mining ($160 million) and renegotiated terms with B2Gold and Allied Gold. However, tensions persist. Barrick Gold has publicly disputed Mali’s $512 million tax claim, warning of potential operational halts due to disruptions. The increased state stake in mining projects and royalty adjustments demonstrate Mali’s intent to maximize benefits from its resource wealth. While these measures may improve fiscal stability, maintaining investor confidence will be critical to sustaining long-term growth in the sector.

Mali

Reforms

Mining

Economy

West Africa