BAMAKO, Mali
Mali adopted a new mining code allowing the state to take up to a 30% stake in new mineral projects and collect more revenues from the vital industry.
Junta leader Assimi Goita
signed the code into law on Monday, his office announced on social media
Tuesday.
The mining code reform could
boost the national budget by 500 billion CFA francs ($820 million), economy
minister Alousseni Sanou said this month.
The new mines minister, Amadou
Keita, said the state hoped the mining industry would eventually contribute to
between 15 and 20% of GDP.
According to analysts, the
reform allows the government to hold up to 10 percent equity in new projects
with the option to buy an additional 20% during the first two years of
commercial production. And it allows the Malian private sector to hold up to five
percent.
The new code also removes tax
exemptions for mining companies during operations.
Mali, a poor Sahel country, is
one of Africa's leading gold producers.
It is also boasts manganese
and lithium — two minerals key to the global energy transition — though these
have not been extensively explored.
Mali produced 72.2 tonnes of
gold in 2022, including six tonnes by artisanal gold panners, then-mines
minister, Lamine Seydou Traore, said in March.
Gold accounts for 25% of the
national budget, 75% of export earnings and 10 percent of GDP, he added.
Mali's mining sector is
dominated by foreign companies, including the Canadian firms Barrick Gold and
B2Gold, Australia's Resolute Mining and the British Hummingbird Resources.
They have continued to operate
despite political instability and an expanding jihadist insurgency.
"Mali's demand for higher
stakes in mining projects ... reflects a wider trend across the continent where
resource-rich countries, impacted by the knock-on effects of global shocks, aim
to increase their control over the mining sector," Mucahid Durmaz, an
analyst with Verisk Maplecroft, said.
But, he added, the Malian
government is "walking a tightrope" and must be "cautious not to
scare away investors."
No comments:
Post a Comment