Mali, Africa’s second-largest gold producer, has suspended the issuance of new mining permits to foreign companies following a tragic mining accident that claimed over 40 lives.
The decision, announced by the Council of Ministers, also includes a ban on issuing artisanal mining permits to foreign nationals while investigations continue.
The collapse of an illegal gold mine near Kéniéba in the western Kayes region last month resulted in the deaths of at least 43 people, mostly women.
The site had previously been operated by a Chinese company, raising concerns over the risks associated with artisanal mining.
This disaster was Mali’s second fatal mining accident in three weeks, following a mining tunnel flood in late January that killed at least 10 people. In response, the government has taken strict punitive measures, including:
- Seizing equipment used in small-scale mining operations.
- Dismissing local officials linked to the accidents.
- Strengthening safety regulations to prevent future tragedies.
Since Mali’s military took power in 2020, the government has pushed for mining sector reforms to increase state revenue from gold production.
An audit exposed widespread tax evasion by multinational corporations shifting profits to low-tax jurisdictions.
As a result, President Assimi Goïta introduced a revised mining code, leading to:
- Renegotiation of mining contracts with foreign companies.
- Over $1 billion in recovered revenue.
- Projected annual gains of $950 million, equivalent to 20% of Mali’s national budget.
Mali’s mining sector remains dominated by foreign investors, including China, with major players such as Barrick Gold, B2Gold Corp, Resolute Mining, and Hummingbird Resources Plc.
However, ongoing disputes over taxation and resource control continue to challenge foreign operations.
According to Economy Minister Alousseni Sanou, increased mining revenues have allowed Mali to repay part of its internal and external debt while funding military and infrastructure projects.
As the country tightens regulations and boosts state benefits from gold mining, investors face an evolving landscape—one where compliance and local partnerships will play a critical role in maintaining access to Mali’s vast gold reserves.
