Can Mali’s Gold Reforms Deliver Without Driving Away Investors?
The West African nation is shaking up its gold sector with bold reforms aimed at keeping more wealth at home. But can it sustain investor confidence while tightening the screws on foreign miners?
Bonface Orucho, bird story agency
Mali is playing a high-stakes game with its gold sector, shaking the foundations of foreign investment while chasing what experts describe as “a long-overdue boost” in domestic revenues.
From arresting top mining executives to shuttering company offices and seizing shipments, the government’s recent moves have sent shockwaves through investor circles.
Yet, for some observers, these actions are a long-overdue move to reclaim control over gold, the lifeblood of the country’s economy.
Senegalese economist Austin Malal calls the reforms “a double-edged sword” — a bold attempt to reshape a historically extractive industry that could either transform Mali’s fortunes or drive capital away.
“The only fear is that only risk-taking investors will make investments and not the robust, established investors who usually have options in terms of where to put their money,” Malal noted in an e-mail exchange.
The latest move has seen the closure of Canadian mining giant Barrick Gold’s Bamako office over alleged unpaid taxes — a step that is part of the country’s broader campaign to extract greater value from its mineral wealth, especially gold.
“Barrick confirmed in a statement that departments within the government this week closed Barrick’s Bamako office,” Reuters reported on April 15.
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Authorities also threatened to place Barrick’s Loulo-Gounkoto mine under provisional administration unless the back taxes were paid — echoing an earlier move last November, when Australian miner and Resolute Mining’s CEO was detained on tax evasion charges.
Mali is one of Africa’s top gold producers, churning out over 70 tons of gold annually before 2023.
The World Gold Council’s most recent data (as of December 2023) ranks Mali as Africa’s second-largest gold producer after Ghana, ahead of traditional heavyweight South Africa.
However, recent figures show a decline, averaging 58 tons in 2024, down from 66 tons in 2023.
Despite the production dip, the latest revenue data (announced in April 2025) from the sector surged by over 50% last year — a testament, authorities say, to the country’s new mining code.
The main law adopted in 2024 is the revised law, which eliminated tax exemptions during the exploitation phase and increased the government’s minimum stake in new mining projects from 10% to 20%, with the option to raise it to 35%.
The government has also tightened regulations on tax reporting, export declarations, and profit repatriation.
Mamadou Camara, a Malian researcher at the University of Social Sciences and Management of Bamako, paints a picture of the sector’s immense potential.
“In 2023, the sector contributed 644 billion CFA (about US$1 billion) to Mali’s state budget. This represents 21.5% of Mali’s budget for the year and a slight increase from the previous year,” he wrote in The Conversation in February.
With Mali facing persistent political and security challenges, which have diminished international financing, the gold sector is fast becoming a cornerstone of national sovereignty.
“These investments have built and maintained schools, health centres, roads, and bridges, strengthening trade,” Camara explains. “The sector is increasingly being seen as a pillar of national sovereignty, a key objective for Malian authorities.”
Still, the path is a precarious one. Mali is asserting itself in a sector where few countries have the capital or technical capacity to go it alone. Mining is a long-term, capital-intensive business, and investors are quick to shift where returns are more predictable — as seen in South Africa’s dramatic decline from a 600-ton gold output in 1993 to just 100 tons today, partly due to an unsteady investment climate.
Despite investor unease, Mali’s mining potential continues to attract major interest.
A source at Barrick Gold told Reuters that “efforts to resolve the tax dispute are ongoing.”
Meanwhile, several companies are doubling down on their commitments.
Australian miner Robex Resources has pledged a US$160 million expansion to support its Nampala mine and launch a second large-scale operation.
Allied Gold Corporation, on the other hand, is injecting US$100 million into its flagship Sadiola mine to double its output capacity within three years.
Canadian-based B2Gold is expanding exploration in the Fekola region, citing “significant untapped potential” despite regulatory headwinds. In a March 2025 statement, the company reaffirmed its confidence in Mali’s gold prospects.
Domestic investors are also making a gesture to invest in the sector. Wassoul’Or, a Malian company, is reportedly finalizing plans to reopen a dormant mine, a feat that could be a rare instance of Malian ownership in a space historically dominated by foreign players.
Earlier projections for 2025 suggest mining tax revenues could hit US$1.2 billion in the first quarter alone, bolstered by the new project launches.
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