HomeBusinessMali receives $1.2 billion from miners after mining sector overhaul

Mali receives $1.2 billion from miners after mining sector overhaul

Mali will reportedly release CFA Fr. 750 billion ($1.2 billion) received from mining companies, after implementing major reforms in the mining sector.

Finance Minister Alousseni Sanou announced this development in a speech to parliament, highlighting the government’s continued efforts to reform the industry, according to a report by Bloomberg.

At the end of December 2023, Mali received CFA Fr 500 billion after negotiations with mining companies.

The total amount is expected to be finalized by March 31, 2024, according to Sanou’s comments to Mali’s National Transition Council, as reported in the minutes of a publicly broadcast meeting in late December, the report said.

Mali’s military leadership has taken a tough approach to international miners and has implemented extensive reforms within the sector in recent years.

These include the adoption of a new mining code requiring companies to repay millions of dollars in taxes and dividends after an audit revealed a revenue shortfall for the state estimated at between CFA Fr300 and CFA Fr600 billion.

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Last year, Australia’s Resolute Mining reached an agreement to pay about US$160 million ($260.58 million) to settle a tax dispute after the company’s CEO was arrested in November.

In September, B2Gold and Allied Gold reached new agreements, including settlement payments regarding their Fekola and Sadiola mines. The company also outlined plans for future expansion projects.

Barrick Gold has indicated it may be forced to halt its mining operations in Mali unless the government halts disruptions to exports and operations.

According to the report, Mali claims Barrick owes approximately US$512 million ($738.71 million) in unpaid taxes and dividends, a claim Barrick has publicly denied.

In addition to the expected revenues from miners, Mali is expected to increase state revenues after the new mining law passed in 2023.

This follows the West African nation and domestic groups increasing their share of asset production from 20% to 35%.

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The code also stipulates that Mali will receive 7.5% of sales if the gold price exceeds $1,500/oz, as explained by Sanou to council members.

“Mali to receive $1.2 billion from miners after mining sector overhaul” was originally created and published by Mining Technology, a brand owned by GlobalData.


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