And Blood seeks to make the most of its mining sector, essential to its economy. On September 1, the Canadian company Barrick Gold announced the signing of an agreement with the Malian authorities to resolve disputes regarding the exploitation of the mine d’or Loulo-Gounkoto. This regulation marks significant progress following the audit of gold mines carried out in 2022, which revealed a shortfall of almost a billion dollars for the Malian State. This audit led to the adoption of a new mining code in 2023, aimed at correcting these shortcomings and strengthening state revenues from mining.
The new Malian mining code now grants the State increased participation in mining projects, going from 20% to 30%and also introduces a participation of 5% reserved for local investors. This major change allows the government to benefit more from mineral wealth, while stimulating the participation of the Malian private sector in an industry historically dominated by foreign companies.
With this new legislation, Mali hopes to recover part of the shortfall estimated between 300 and 600 billion FCFAwhile ensuring better distribution of mining revenues. The agreement signed with Barrick Gold could be a turning point in this process, as it guarantees more equitable exploitation of resources and could serve as a model for other mining companies operating in the country.
Barrick Gold is a key partner of Mali, having invested approximately 10 billion dollars in the Malian mining sector over the last 30 years. Loulo-Gounkoto, Mali’s largest gold mine, produces nearly 700,000 ounces of gold per year, thereby contributing significantly to the country’s economy. However, recurring tensions around the distribution of mining revenues have often strained relations between the Malian government and foreign companies.
As part of this agreement, the Malian government is also working to ensure that new investors fully comply with the new mining code, ensuring that revenues generated from mining operations further benefit the country’s economic and social development.
