Mali: the government adjusts mining taxes to maximise revenue

At this week's Council of Ministers meeting, the Malian government decided to review the taxation of the mining sector, an announcement made official on Wednesday 5 March in a press release from the Prime Minister's office. This reform, which follows on from the adoption of the new Mining Code in 2023, is aimed at "making more profit from mining income", an objective reaffirmed as a priority by the authorities. In addition to measures relating to artisanal gold panning in the wake of the Kokoyo disaster, this tax readjustment is intended to boost government revenue in a key sector.

Three main measures make up this reform. Firstly, the special tax on certain products (ISPC) is now extended to marble, gold bars and other ores, thereby broadening the tax base. Secondly, the minimum tax rate has been reduced from 5% to 3%, an adjustment designed to maintain the country's attractiveness to investors. Finally, stamp duty on export intentions has been extended to all mining products. These provisions are designed to stimulate production while improving the transparency of official declarations, a sensitive point raised by the Extractive Industries Transparency Initiative (EITI). Its latest report highlighted significant discrepancies between volumes produced and exported.

For one tax expert interviewed, this reform reflects "the need to align with the new Mining Code". An expert in the extractive sector added that soaring gold prices had made Malian taxation too advantageous for mining companies, justifying this readjustment. By 2023, the extractive sector will account for almost 30% of government revenue, making gold - of which Mali is a major producer in Africa - a strategic economic lever.

This need for resources is part of a tense budgetary context. In April 2024, the International Monetary Fund (IMF) warned of Mali's deficit, calling for better revenue mobilisation in the face of growing financing needs. Tax reform therefore appears to be a response to these pressures, while seeking to reconcile profitability for the State and attractiveness to foreign investors.

If the aim is to optimise revenues without discouraging players in the sector, the implementation of these measures will be closely scrutinised. Broadening the tax base and improving reporting could strengthen mining governance, but their success will depend on the authorities' ability to effectively control flows and maintain a favourable investment climate. In a country where artisanal gold panning coexists with large-scale industrial operations, this reform marks a key step towards making the mining sector a more robust driver of the national economy.