Canada has just paid 18 billion CFA francs (or 30 million US dollars) to Mali to resolve a dispute between them over the exploitation of gold.
Concretely, the Canadian company B2Gold has just paid 18 billion CFA francs to maintain its activity in the country.
Note that this transaction comes after a revealing government audit, highlighting a colossal shortfall for the Malian state, estimated between 300 and 600 billion CFA francs.
The Fekola mine, B2Gold’s jewel and the second largest gold mining operation in the country, is at the heart of this financial restructuring.
With an expected annual production of 420,000 ounces of gold in 2024, its strategic importance justifies the efforts made to sustain its activity.
Tax regularization is accompanied by a significant change in the operational framework.
The Fekola Regional expansion project, located 20 kilometers from the main mine, promises to increase production by 80,000 to 100,000 ounces of gold per year from 2025.
This extension will be subject to the new Malian mining code of 2023.
This new regulatory framework requires increased participation by the State and national investors, increased to 35%, compared to 20% previously.
A development which demonstrates Mali’s desire to regain control of its natural resources.
Government estimates predict additional annual revenues of 500 billion CFA francs thanks to this reform.
B2Gold’s third quarter 2024 results reveal operational challenges faced. Gold production by the Canadian giant has been affected by operating delays, adverse weather conditions and equipment problems in Mali.
Despite these obstacles, the company remains focused on its annual objectives, demonstrating its resilience and long-term commitment to the country.
