Mali announces further mining agreements under the updated legislation

The military government of Mali has recently signed seven deals that give the state more money from both domestic and foreign mining corporations.

At its meeting on Friday, the Council of Ministers authorized the exploration and exploitation agreements, according to a statement released late Friday. This gives Mali priority access to income and a guaranteed, non-reducible interest in mining operations.

In addition to Ganfeng’s (002460.SZ), the agreements cover gold mines such as the Sadiola project run by Allied Gold (AAUC.TO), the opening of a new tab subsidiary, B2Gold’s (BTO.TO), the opening of a new tab Fekola mine, and Resolute Mining’s (RSG.AX).

The military government of Mali implemented a new mining code in 2023 that increased state and local ownership of mines from 20% to at least 35% and raised royalties from 6.5% to 10%.

The most recent agreements come after initial contracts were struck with the same businesses in September and November of 2024.

No remark was provided by Resolute Mining. Requests for response from Ganfeng, B2Gold, and Allied Gold were not immediately answered.

The parameters of Mali’s updated mining code are reflected in agreements that Endeavour Mining (EDV.L) and other gold miners have already signed.

Although the Canadian business Barrick Mining (ABX.TO) has opened a new tab, it is still embroiled in a protracted dispute with the government.

To make things more complicated for Barrick, Reuters reported this month that a top Barrick executive who had previously negotiated on behalf of the gold miner with Mali’s government had changed sides and joined the Mali president’s advisory team.

Mali is one of the leading producers of gold in Africa, but output and investment have been negatively impacted by regulatory uncertainty.

While shifting its focus from Western investors to Russian interests, the government, like others in the area, has emphasized resource nationalism.