Mali to Receive $1.2 Billion from Miners in First Quarter Following Mining Overhaul
Mali is set to receive 750 billion CFA francs ($1.2 billion) from miners in the first quarter of this year, following a significant overhaul of its mining sector.
In late December, Mali received 500 billion CFA francs from mining companies after successful negotiations, Finance Minister Alousseni Sanou told Parliament.
The total amount is expected by March 31, according to Sanou’s statement to Mali’s National Transition Council, as reported in minutes from the late December meeting, which were aired by the state broadcaster ORTM.
Mali’s military-led government has taken a tough stance on international mining companies, implementing a comprehensive overhaul of the sector in recent years.
The government adopted a new mining code and demanded companies pay millions of dollars in back taxes and dividends after an audit revealed a shortfall of between 300 billion and 600 billion CFA francs in state revenue.
Australia’s Resolute Mining agreed in 2023 to pay around $160 million to resolve a tax dispute after the government detained the company’s CEO in November.
B2Gold and Allied Gold also reached new agreements in September, which included settlement payments for their Fekola and Sadiola mines, along with expansion plans.
However, Barrick Gold has warned that it may halt its operations in Mali unless the government stops disrupting its exports and activities.
Mali claims Barrick owes around $512 million in unpaid taxes and dividends, a claim the company denies. Four Barrick executives were detained in November after a previous agreement between the two parties fell through.
Mali is also set to boost its state revenue following the adoption of the 2023 mining code, which increased the country’s stake in producing assets from 20% to 35%. The new code also stipulates that Mali will receive 7.5% of sales if gold prices exceed $1,500 per ounce, Sanou told the council.
