Mali military government introduces mining code allowing 35% state stake
Updated
Updated · Al Jazeera English · May 5
Mali military government introduces mining code allowing 35% state stake
11 articles · Updated · Al Jazeera English · May 5
The 2023 law targets foreign-dominated mining operations in Africa’s second-largest gold producer, where gold generated about $4.3bn in 2024 and accounts for nearly 80% of exports.
Authorities paired the code with stricter tax enforcement to raise national revenue from operators including Barrick Gold, as Canadian, Australian and increasingly Chinese companies dominate the sector.
More than two million Malians depend on mining, which includes major gold output and large lithium reserves, even as coups, insecurity and recent attacks deepen instability across the country.
Can Mali's pivot to Russia and China secure its vast mineral wealth amid a spiraling security crisis?
As jihadists threaten the capital, who is winning the battle for Mali's gold and lithium riches?
Mali’s Mining Sector Transformation (2023-2026): State Control, Revenue Gains, and Investor Challenges
Overview
Between 2023 and 2026, Mali transformed its mining sector by introducing a new mining code that mandated a minimum 20-35% state ownership, overhauled taxation, and imposed stricter compliance. This reform, part of a broader regional trend in West Africa, strengthened Mali's negotiating position and led to the creation of state entities to manage mining assets. While state mining revenues surged by over 50% in 2024, gold production declined significantly due to operational disruptions and investor concerns. Major companies like Barrick Gold faced state takeovers and arbitration, reflecting tensions between state control and investor interests. The reforms also emphasized local development through funds and content requirements, aiming for sustainable benefits despite ongoing challenges.