Mali to receive $1.2bn from miners following mining sector overhaul

Mali is reportedly on track to receive CFA 750 billion francs ($1.2 billion) from mining companies in the first quarter of this year after sweeping reforms to its mining sector.

Finance Minister Aluseni Sanu announced the development in a speech in parliament, highlighting the government’s ongoing efforts to reform the industry, the report said. Bloomberg.

At the end of December 2023, Mali received CFA 500 billion francs after negotiations with mining companies.

The total amount is expected to be secured by March 31, 2024, according to Sanou’s remarks to Mali’s National Transitional Council, as outlined in the minutes of a meeting published in late December, the report said.

Mali’s military leadership has taken a tough approach to international miners, implementing sweeping reforms in the sector in recent years.

These include the adoption of a new mining code that obliges companies to return millions of dollars in taxes and dividends after an audit revealed a shortfall in state revenues estimated at between CFA Fr300 and CFA Fr600 billion.

Last year, Australia’s Resolute Mining agreed to pay about $160 million (A$260.58 million) to settle a tax dispute after the company’s chief executive was arrested in November.

In September, B2Gold and Allied Gold reached new agreements that included settlement payments related to their Fekola and Sadiola mines.The company also unveiled plans for future expansion projects.

Barrick Gold noted that it may have to stop its mining operations In Mali, unless the government stops disrupting its exports and operations.

According to the report, Mali claims Barrick owes about $512 million (C$738.71 million) in unpaid taxes and dividends, a claim Barrick has publicly denied.

In addition to expected revenues from miners, Mali is set to increase government revenues with a new mining code passed in 2023.

This follows the West African nation and inland groups increasing their share of production assets from 20% to 35%.

The code also stipulates that Mali will receive 7.5% of sales if gold prices exceed $1,500/oz, as Sanu detailed to board members.

“Mali to get $1.2 billion from mining after overhaul of mining sector” was originally created and published by Mining technologyTrademark owned by GlobalData.

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