B2Gold Moves Forward with $10 Million Investment in Mali’s Fekola Gold Complex After Settlement

Canadian miner B2Gold has announced plans to invest $10 million in exploration at its Fekola gold complex in Mali this year, following a settlement with the Malian government over its new mining code that reduces the risk of disruption.

In August 2023, Mali introduced a revised mining code, similar to those enacted by other military-led governments in West Africa. The new code increases the state’s share of mining revenues and removes tax exemptions for mining companies.

B2Gold was one of the first companies to reach an agreement with Mali over the updated mining regulations. In September, the company settled an income tax dispute and agreed to adjust part of its exploration activities to comply with the new rules. Fekola, which has an active mine, is also undergoing ongoing exploration.

“From a B2Gold perspective, we have seen a reduction in risk since the signing of our settlement agreement,” said Clive Johnson, CEO of B2Gold, in an email response to Reuters.

Mali has previously detained and arrested employees from companies that did not comply with the new code and tax obligations.

The country has also issued arrest warrants for Mark Bristow, CEO of Barrick Gold, Mali’s largest investor. This month, Mali seized $250 million in gold from Barrick’s Loulo-Gounkoto mine, prompting Barrick to suspend operations.

Johnson emphasized that B2Gold does not expect any government actions targeting its management. “We have expatriate employees who regularly move in and out of the country, including mine management, so there is no reason to believe that any detention would be considered in relation to B2Gold.”

B2Gold’s shares were up 0.8% on the Toronto Stock Exchange as of 1807 GMT on Wednesday.