Considering the overhaul of its mining industry, Mali is expected to collect 750 billion CFA francs ($1.2 billion) in the first quarter of 2025.
- Mali is expected to collect 750 billion CFA francs ($1.2 billion) in the first quarter of 2025 from its mining industry overhaul.
- The military government in Mali decided to restructure the mining industry after discovering a deficit of 300 billion CFA francs to 600 billion CFA francs in state revenue.
- An agreement collapse in November led to the second detention of four Barrick executives.
The West African country’s finance minister, Alousseni Sanou, announced in a statement to its parliament that Mali got 500 billion CFA francs in December following agreements with mining corporations.
The entire sum will be paid by March 31, the minister assured Mali’s National Transition Council, the legislative body, according to meeting minutes carried on state broadcaster ORTM late Friday, as seen on Bloomberg.
Since Mali became more strict with mining businesses within its borders, the country’s mining industry has undergone an extensive restructuring.
The military government decided to go in this direction after it discovered a deficit of 300 billion CFA francs to 600 billion CFA francs in state revenue.
As a result, a new mining code has been adopted, mandating mining companies to pay millions of dollars in back taxes and dividends.
“Australia’s Resolute Mining Ltd. last year agreed to pay about $160 million to resolve a tax dispute after the government detained the gold producer’s chief executive in November,” as seen in the report by Bloomberg.
“B2Gold Corp. and Allied Gold Corp. also announced in September fresh agreements that included settlement payments for their Fekola and Sadiola mines, respectively, as well as expansion projects.”
Very recently, Barrick Gold Corp. indicated that it would cease its mining operations in Mali if the authorities continued to interfere with its activities and exports.
In response, Mali noted that this company owes over $512 million in unpaid profits and taxes. Barrick, however, denied this.
In November, an agreement between the parties collapsed, leading to the second detention of four Barrick executives.
Mali will also seek to raise state revenue, according to Sanou, following the expansion of its interest in producing assets to 35% from 20% under a new mining legislation enacted in 2023.
The accord further allows Mali to collect 7.5% of sales if gold prices rise beyond $1,500 per ounce, he informed council members.
