The West African nation of Mali is preparing significant revisions to its mining code, signaling a potential shift in policy that could reshape the country’s relationship with international mining companies. Government officials confirmed this week that they are working to ease several of the stringent regulations that have drawn criticism from industry players since the code’s implementation in 2019.
The current mining framework, described by industry analysts as one of Africa’
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The West African nation of Mali is preparing significant revisions to its mining code, signaling a potential shift in policy that could reshape the country’s relationship with international mining companies. Government officials confirmed this week that they are working to ease several of the stringent regulations that have drawn criticism from industry players since the code’s implementation in 2019.
The current mining framework, described by industry analysts as one of Africa’s most demanding regulatory environments, has been a point of contention between Mali’s government and mining executives. Foreign investors have consistently cited the code’s harsh fiscal terms and operational constraints as barriers to new investment in a country that ranks as Africa’s fourth-largest gold producer.
“We recognize that certain aspects of our mining regulations have created challenges for both existing operations and potential investors,” said Ibrahim Diallo, Mali’s Minister of Mines, in a statement released Tuesday. “These proposed amendments reflect our commitment to finding a balance between national interests and creating a more attractive environment for responsible mining investment.”
Among the proposed changes is a reduction in the state’s free-carried interest in mining projects from 20% to 15%, a move that would bring Mali more in line with regional neighbors like Côte d’Ivoire and Burkina Faso. The government is also considering extending the stability period for mining contracts from 10 to 15 years, providing companies with greater certainty for long-term investment decisions.
The potential reforms come at a critical juncture for Mali’s economy, which has weathered multiple political transitions since 2020 following military coups. The mining sector represents approximately 10% of Mali’s GDP and accounts for over 70% of export earnings, with gold being the primary commodity.
Industry experts suggest the timing of these reforms is not coincidental. Mali has seen a noticeable decline in mining exploration investment since 2019, with several major companies redirecting their resources to more favorable jurisdictions in West Africa. Meanwhile, neighboring countries have been actively modernizing their mining codes to attract global capital.
“Mali’s recognition that its mining code needs adjustment reflects the competitive reality of the global mining landscape,” said Alexandra Williams, senior mining analyst at Global Resources Institute. “Countries with abundant resources must still create competitive frameworks to attract capital, particularly in gold mining where companies have multiple investment options across similar geological terrains.”
The country’s gold production has remained relatively stable at around 60 tonnes annually, largely driven by established operations from companies like Barrick Gold, B2Gold, and Resolute Mining. However, industry observers note that Mali’s pipeline of new projects has thinned considerably, raising concerns about future production levels.
B2Gold’s CEO, Robert Harris, cautiously welcomed the news during an investors call last week. “We’ve maintained productive dialogue with Malian authorities regarding the challenging aspects of the current code. Any moves toward a more balanced regulatory approach would be positive for existing operators and the country’s mining future,” he said.
The proposed amendments also include simplifying the permitting process for exploration activities and reducing administrative burdens that have slowed project development. Additionally, the government is considering revisions to the local content requirements that many companies have found difficult to implement given the country’s industrial capacity constraints.
Mali’s move follows a regional trend of mining code revisions across West Africa. Ghana modified aspects of its mining regulations in 2021 to stimulate new exploration, while Burkina Faso is currently reviewing its code to remain competitive.
However, some Malian civil society organizations have expressed concern about potential reductions in state participation and revenue. The National Mining Advocacy Coalition released a statement urging the government to ensure any revisions “maintain Mali’s sovereignty over its natural resources and secure fair benefits for citizens.”
Political analysts note that the reform effort also reflects Mali’s broader strategy to diversify its international partnerships. The current military government has reduced ties with traditional Western allies while strengthening relationships with Russia and China.
“Mali’s mining sector has traditionally been dominated by Western companies, but we’re seeing increased interest from Russian and Chinese investors who may operate under different parameters,” said François Touré, political economist at the West African Center for Policy Studies. “These regulatory adjustments may be designed to accommodate a more diverse investor landscape.”
The Ministry of Mines indicated that stakeholder consultations on the draft amendments will begin next month, with potential implementation by early 2024. Industry representatives from both domestic and international mining companies have been invited to participate in the review process.
As Mali navigates this regulatory recalibration, the outcome will likely influence not only the country’s mining trajectory but also its broader economic recovery amid ongoing security challenges in the region.
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