Mali is reportedly set to receive CFA Fr750bn ($1.2bn) from mining companies in the first quarter of this year after implementing wide-ranging reforms of its mining sector.
Finance Minister Alousseni Sanou announced this development in a speech to parliament, highlighting the government’s ongoing efforts to reform the industry, according to a report by Bloomberg.
In late December 2023, Mali received CFA Fr500bn after negotiations with mining companies.
The total amount is expected to be secured by 31 March 2024, according to Sanou’s remarks to Mali’s National Transition Council, as reported in the minutes from a publicly aired meeting in late December, the report said.
Mali’s military leadership has adopted a stringent approach towards international miners, implementing extensive reforms within the sector in recent years.
These include the adoption of a new mining code, which mandates companies to pay back millions of dollars in taxes and dividends after a revenue shortfall for the state, estimated at between CFA Fr300bn and CFA Fr600bn, was revealed in an audit.
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By GlobalData
Last year, Australia’s Resolute Mining reached an agreement to pay around $160m (A$260.58m) to settle a tax dispute, after the company’s CEO was detained in November.
In September, B2Gold and Allied Gold reached new agreements that included settlement payments concerning their Fekola and Sadiola mines. The company also outlined plans for future expansion projects.
Barrick Gold has indicated that it may be forced to halt its mining operations in Mali unless the government ceases disruptions to its exports and operations.
According to the report, Mali claims Barrick owes around $512m (C$738.71m) in unpaid taxes and dividends, a claim that Barrick has publicly rejected.
In addition to the expected revenue from miners, Mali is set to enhance state revenue following the new mining code adopted in 2023.
This follows the West African nation and domestic groups increasing their stake in producing assets from 20% to 35%.
The code also stipulates that Mali will receive 7.5% of sales if gold prices exceed $1,500/oz, as detailed by Sanou to council members.
