Following an audit of the mining sector carried out in 2022, the Malian government decided to suspend the granting of new mining titles last December. A new mining code has been drafted to increase the sector’s contribution to the economy, notably by doubling its contribution to GDP.
On Tuesday August 8, Mali’s National Transitional Council, which currently acts as the country’s legislative body, passed a new mining code. Adopted unanimously by the plenary session of parliament, the new law will generate additional annual revenues of at least 500 billion CFA francs ($803 million), reports ORTM national television.
Among the new provisions, the State will now be able to hold up to a 30% interest in mining projects, compared with a maximum of 20% in the 2019 code. The new law maintains the government’s free shareholding at 10%, but allows the executive to acquire an additional 20% interest within two years of the mines entering commercial production.
In addition, local private players will be able to obtain a 5% interest in the mines, giving Mali a total stake of 35%. In a mining sector essentially dominated by foreign mining companies (notably Canadian, British and Australian), these new provisions should enable the contribution of mining to 20% of gross domestic product (GDP), compared with 9% at present.
