"Can Mali\u2019s Gold Reforms Deliver Without Driving Away Investors?"

" Can Mali\u2019s Gold Reforms Deliver Without Driving Away Investors? \r\n\r\n 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? \r\n\r\n Bonface Orucho, bird story agency \r\n\r\nMali 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.\r\n\r\nFrom arresting top mining executives to shuttering company offices and seizing shipments, the government\u2019s recent moves have sent shockwaves through investor circles.\r\n\r\nYet, for some observers, these actions are a long-overdue move to reclaim control over gold, the lifeblood of the country's economy.\r\n\r\nSenegalese economist Austin Malal calls the reforms \u201ca double-edged sword\u201d \u2014 a bold attempt to reshape a historically extractive industry that could either transform Mali\u2019s fortunes or drive capital away.\r\n\r\n\u201cThe 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,\u201d Malal noted in an e-mail exchange.\r\n\r\nThe latest move has seen the closure of Canadian mining giant Barrick Gold\u2019s Bamako office over alleged unpaid taxes \u2014 a step that is part of the country\u2019s broader campaign to extract greater value from its mineral wealth, especially gold.\r\n\r\n\u201cBarrick confirmed in a statement that departments within the government this week closed Barrick\u2019s Bamako office,\u201d Reuters reported on April 15.\r\n\r\n \r\n\r\nAuthorities also threatened to place Barrick\u2019s Loulo-Gounkoto mine under provisional administration unless the back taxes were paid \u2014 echoing an earlier move last November, when Australian miner and Resolute Mining\u2019s CEO was detained on tax evasion charges.\r\n\r\nMali is one of Africa\u2019s top gold producers, churning out over 70 tons of gold annually before 2023.\r\n\r\nThe World Gold Council\u2019s most recent data (as of December 2023) ranks Mali as Africa\u2019s second-largest gold producer after Ghana, ahead of traditional heavyweight South Africa.\r\n\r\nHowever, recent figures show a decline, averaging 58 tons in 2024, down from 66 tons in 2023.\r\n\r\nDespite the production dip, the latest revenue data (announced in April 2025) from the sector surged by over 50% last year \u2014 a testament, authorities say, to the country\u2019s new mining code.\r\n\r\nThe main law adopted in 2024 is the revised law, which eliminated tax exemptions during the exploitation phase and increased the government\u2019s minimum stake in new mining projects from 10% to 20%, with the option to raise it to 35%.\r\n\r\nThe government has also tightened regulations on tax reporting, export declarations, and profit repatriation.\r\n\r\nMamadou Camara, a Malian researcher at the University of Social Sciences and Management of Bamako, paints a picture of the sector\u2019s immense potential.\r\n\r\n\u201cIn 2023, the sector contributed 644 billion CFA (about US$1 billion) to Mali\u2019s state budget. This represents 21.5% of Mali\u2019s budget for the year and a slight increase from the previous year,\u201d he wrote in The Conversation in February.\r\n\r\nWith Mali facing persistent political and security challenges, which have diminished international financing, the gold sector is fast becoming a cornerstone of national sovereignty.\r\n\r\n\u201cThese investments have built and maintained schools, health centres, roads, and bridges, strengthening trade,\u201d Camara explains. \u201cThe sector is increasingly being seen as a pillar of national sovereignty, a key objective for Malian authorities.\u201d\r\n\r\nStill, 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 \u2014 as seen in South Africa\u2019s dramatic decline from a 600-ton gold output in 1993 to just 100 tons today, partly due to an unsteady investment climate.\r\n\r\nDespite investor unease, Mali\u2019s mining potential continues to attract major interest.\r\n\r\nA source at Barrick Gold told Reuters that \u201cefforts to resolve the tax dispute are ongoing.\u201d\r\n\r\nMeanwhile, several companies are doubling down on their commitments.\r\n\r\nAustralian miner Robex Resources has pledged a US$160 million expansion to support its Nampala mine and launch a second large-scale operation.\r\n\r\nAllied Gold Corporation, on the other hand, is injecting US$100 million into its flagship Sadiola mine to double its output capacity within three years.\r\n\r\nCanadian-based B2Gold is expanding exploration in the Fekola region, citing \u201csignificant untapped potential\u201d despite regulatory headwinds. In a March 2025 statement, the company reaffirmed its confidence in Mali\u2019s gold prospects.\r\n\r\nDomestic investors are also making a gesture to invest in the sector. Wassoul\u2019Or, 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.\r\n\r\nEarlier projections for 2025 suggest mining tax revenues could hit US$1.2 billion in the first quarter alone, bolstered by the new project launches.\r\n\r\n bird story agency "

"Can Mali\u2019s Gold Reforms Deliver Without Driving Away Investors?"

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