Mali to Earn $1.2 Billion from Mining Sector in Early 2025 Amid New Reforms
Mali’s mining sector is projected to generate a remarkable $1.2 billion (750 billion CFA francs) in revenue by March 31, 2025, as announced by Finance Minister Alousseni Sanou during a parliamentary address. This substantial boost underscores the critical role of mining in Mali’s economy and reflects the success of recent regulatory reforms.
Key Economic Milestones
The Finance Minister highlighted the nation’s ambitious plan to increase state revenue from 20% to 35%, leveraging enhanced stakes in mining assets under the 2023 mining legislation. Additionally, Mali will now receive 7.5% of gold sales when prices exceed $1,500 per ounce, a move expected to further solidify the sector’s contribution to the national budget.
Mining Sector Restructuring
In December 2024, Mali collected 500 billion CFA francs after renegotiating terms with mining companies. This follows a comprehensive overhaul of the mining code, which now mandates mining firms to pay back taxes and dividends, addressing a significant revenue deficit estimated between 300 and 600 billion CFA francs.
Key agreements include:
- Resolute Mining Ltd. resolving a $160 million tax dispute.
- B2Gold Corp. and Allied Gold Corp. finalizing settlement payments tied to expansion projects at the Fekola and Sadiola mines.
Nationalization Efforts
The government’s assertive approach extends to nationalization. In October 2024, Mali completed the acquisition of the Yatela gold mine from AngloGold Ashanti and Iamgold. This is part of a broader strategy to regain control over its natural resources and ensure more equitable distribution of mining benefits.
Challenges and Tensions
Despite these successes, tensions remain. Barrick Gold Corp. has threatened to exit Mali over alleged government interference, claiming it faces unjustified demands for $512 million in unpaid profits and taxes—a claim Barrick denies.
Outlook
Mali’s mining reforms aim to stabilize its economy and ensure that the wealth from its natural resources benefits the broader population. With $1.2 billion expected in Q1 2025, the country is positioning itself as a stronger player in the global mining industry.