Mali: several billion CFA francs expected from the mining sector in the first quarter of 2025

Mali's Finance Minister, Alousseni Sanou, has told parliament that Mali generated exceptional revenue of 500 billion CFA francs in December, following agreements reached with several mining companies. This announcement comes against a backdrop of far-reaching reforms in the country's mining industry, carried out by the government to offset a large budget deficit.

Since the discovery of a CFA 300 billion hole in state revenues out of an expected CFA 600 billion, the Malian government, under the aegis of the military authorities, has adopted a stricter approach to mining activities. This strategy led to the promulgation of a new mining code in 2023, which requires mining companies to pay their tax and dividend arrears.

"This new legislative framework has enabled Mali to strengthen its control over its natural resources, increasing the state's stake in production assets from 20% to 35%," said Sanou. The aim of this measure is to maximise revenue from gold, the country's main source of wealth.

Among the companies that have agreed to regularise their tax situation is Resolute Mining Ltd, an Australian company, which undertook to pay around $160 million following the detention of its managing director last November. Other players, such as B2Gold Corp. and Allied Gold Corp. also signed agreements in September, including regularisation payments for their Fekola and Sadiola mines, as well as expansion projects.

However, the situation remains tense with Barrick Gold Corp, which has threatened to suspend its operations in Mali, citing government interference. The Malian authorities accuse the company of owing more than $512 million in unpaid taxes and dividends, which Barrick vigorously disputes. In November, unsuccessful negotiations led to the temporary detention of four of the company's executives.

These actions illustrate Mali's determination to maximise the economic benefits of its mining sector. The increase in the State's stake and the imposition of strict obligations on companies operating on its territory mark a crucial stage in the regaining of the country's economic sovereignty.

Despite tensions with certain companies, these measures seem to be bearing fruit, as evidenced by the CFA 500 billion obtained. This financial windfall could make a significant contribution to reducing the budget deficit and financing socio-economic development projects.