Mali, along with its Alliance of Sahel States counterparts—Burkina Faso and Niger—is actively reclaiming control over its mineral resources, challenging the dominance of Western multinational mining firms extracting wealth from its territory.
A central figure in this shift is Canada-based mining giant Barrick Gold, which recently faced scrutiny when Mali arrested four employees over alleged financial misconduct. Mali has slapped Barrick Gold with a $500 million tax bill and has also raised the possibility of suspending the company’s licence, citing non-compliance with social, environmental and financial commitments.
The country’s new mining code enacted in August 2023 gives the state a 10 per cent stake in projects (with an option to increase to 20 per cent within two years) and up to a 35 per cent stake in new ventures, which has led Barrick’s CEO to warn that excessive state intervention could ‘compromise the benefits,’ while implying local authorities lack expertise. ‘We’re dealing with people that are not particularly competent in the mining industry.’
Amid these regulatory changes, Mali has nationalised a gold mine previously operated by South Africa-based AngloGold Ashanti and Canada-based Iamgold, each holding 40 per cent stakes alongside Mali’s 20 per cent interest. The companies gave up the mine for a ‘symbolic franc.’ While AngloGold Ashanti cited low profit margins as a reason for the sale, Mali argued the site still contains substantial untapped reserves. As part of the deal, Mali is set to receive $36 million to close and rehabilitate the mine and an additional payment of 2.5 billion CFA francs (approximately $4.1 million) to the treasury. Australian mining group Firefinch also transferred the Morila gold mine to Mali state-owned company SOREM, created in 2022 to secure a more equitable share of gold for its citizens, marking another shift away from foreign-operated mining projects.
Mali’s moves reflect initiatives to reclaim resources across the Alliance of Sahel States. Burkina Faso recently nationalised two gold mines and announced plans to withdraw mining permits from some foreign firms to increase its share of local resources. Niger has also stepped up by revoking French nuclear giant Orano’s mining licence. Burkina Faso President Ibrahim Traore asserted the new military government’s commitment to sovereignty over resources by stating, ‘We know how to mine our gold, and I don’t understand why we’re going to let multinationals come and mine it.’
Sources
https://africa.businessinsider.com/local/markets/top-gold-producing-countries-in-africa/z3kmxbz
https://oec.world/en/profile/country/mli
https://www.barrons.com/news/canadian-mining-firm-employees-arrested-in-mali-sources-3e682292
Canadian companies in Africa
https://natural-resources.canada.ca/maps-tools-and-publications/publications/minerals-mining-publications/canadian-mining-assets/19323
Mali concludes nationalisation
https://www.barrons.com/news/mali-concludes-gold-mine-nationalisation-deal-d387390d