Mali Approves Seven New Mining Deals to Boost State Revenue and Resource Sovereignty

Mali Signs Seven New Mining Agreements to Strengthen State Role in Gold and Lithium Projects

Mali’s military government has approved seven new agreements with international and local mining companies, deepening state participation and increasing revenues as part of its broader push for resource sovereignty.

The Council of Ministers endorsed the exploitation and exploration contracts on Friday, according to an official statement. The deals guarantee the state a non-reducible stake in each project, along with priority access to dividends.

The agreements cover several high-profile gold operations, including:

Sadiola mine, operated by an Allied Gold subsidiary

Fekola mine, owned by B2Gold

Syama site, managed by Resolute Mining

Bougouni lithium project, led by Ganfeng Lithium

A Tougher Mining Code

Since taking power, Mali’s transitional military-led government has moved to tighten control over its mining industry. In 2023, it introduced a new mining code that:

Raised royalty rates from 6.5% to 10%

Increased minimum state and local ownership in mining projects to 35%, up from 20%

The law sparked pushback from miners and has been linked to a 23% decline in gold output in 2024, with production falling to 51 metric tons.

Despite concerns, three gold producers—including London-listed Endeavour Mining—agreed in July to adopt the new code. While their combined output represents a small share of Mali’s total, their compliance marks a significant shift in industry relations.

Dispute with Barrick Gold

Not all companies have aligned with the government’s new rules. Canadian miner Barrick Gold remains in a legal standoff with authorities.

Tensions escalated in January 2025 when Barrick suspended operations at its flagship Loulo-Gounkoto complex after the government seized gold stocks stored on-site.

Loulo-Gounkoto, one of Mali’s largest mines, accounted for about 15% of Barrick’s global output before the shutdown and remains a key source of Mali’s export earnings.

Balancing Growth and Risk

Mali continues to rank among Africa’s top gold producers, but regulatory uncertainty has shaken investor confidence and cut into output. The latest agreements suggest the government is determined to push ahead with its resource-nationalist agenda while balancing the need to attract and retain mining investment.