Mali approves seven new mining deals under revised code 

Mali has approved seven new mining agreements under its revised mining code, marking a significant shift in how the West African nation manages its mineral resources. The Council of Ministers sanctioned these exploration and exploitation agreements to ensure the country maintains a fixed, non-reducible equity position in mining ventures along with priority access to dividends.

The agreements encompass several major gold operations including the Sadiola project operated by an Allied Gold subsidiary, B2Gold’s Fekola mine, Resolute Mining’s Syama site, and Ganfeng’s Bougouni project. These contracts represent the latest implementation phase of Mali’s 2023 mining code, which substantially increased the country’s stake in its mineral wealth.

Under the revised regulations, royalty rates have jumped from 6.5% to 10%, while minimum state and local ownership requirements for mines have increased from 20% to 35%. This policy shift reflects Mali’s growing resource nationalism and determination to capture more value from its substantial gold reserves.

The newly approved agreements follow preliminary contracts signed with the same mining companies between September and November 2024. When approached for comment, Resolute Mining declined to provide a statement, while Allied Gold, B2Gold, and Ganfeng did not immediately respond to media inquiries.

Some operators have already aligned with the updated mining code, including Endeavour Mining, which previously signed agreements under the new framework. However, not all companies have smoothly transitioned to the new regulatory environment.

Canadian mining giant Barrick Gold remains locked in a prolonged dispute with the Malian government over terms. Their negotiations have been further complicated by the departure of one of Barrick’s former negotiators, who now serves as an adviser to Mali’s president, creating potential conflicts of interest in the ongoing talks.

The mining sector restructuring comes amid broader geopolitical shifts in Mali. Following a series of military coups since 2020, the country has increasingly pivoted away from traditional Western partners toward Russian interests. This realignment has created additional uncertainties for international mining companies operating in the region.

Despite these challenges, Mali maintains its position as one of Africa’s leading gold producers. The country’s gold mining sector has been crucial to its economy for decades, contributing significantly to export earnings and government revenues. However, the push for greater state control reflects a continental trend where resource-rich African nations are reassessing historic mining agreements to ensure more equitable distributions of profits.

Industry analysts suggest these regulatory changes could have mixed impacts on Mali’s mining sector. While increasing government revenue in the short term, some fear the higher costs for operators could deter future investment, particularly from Western mining companies that may have alternative opportunities in more stable jurisdictions.

The implementation of these agreements will be closely watched by mining investors across West Africa, as neighboring countries with similar geological profiles may follow Mali’s example if the new framework proves successful in increasing government revenues without significantly hampering production.

For now, these seven agreements represent a pivotal moment in Mali’s resource governance, as the country attempts to balance attracting necessary foreign investment and expertise with ensuring its citizens receive a fair share of the nation’s mineral wealth.