Mali president signs new mining code in bid to raise govt stake

Hummingbird Resources

29/08/2023 12:44

BAMAKO, Aug 29 (Reuters) - Mali's interim President
Assimi Goita has signed into law a new mining code which will
allow the military-led government to increase its ownership of
gold concessions and recoup what it says is a major shortfall in
production revenues. 
    The new code, signed on state television late on Monday,
will allow the state and local investors to take stakes as high
as 35% in mining projects compared with 20% now, and could more
than double the sector's contribution to gross domestic product
to around 20%, the government has said.
    It was not immediately clear if the code would affect
existing projects. A mining ministry official said last week
that this would depend on the implementing decrees, which have
not yet been made available. 
    Mali is one of Africa's top gold producers and is home to
mining companies including Barrick Gold  ABX.TO ,
B2GOLD BTO.TO , Resolute Mining  RSG.AX  and Hummingbird
Resources  HUMR.L .
    Mali's Finance Minister Alousseni Sanou said on Monday
evening that an audit of the mining sector had shown that the
state was missing 300 billion to 600 billion CFA francs ($497
million to $995 million) which it intended to recover. 
    "The shortfall is around 300 to 600 billion CFA. So if the
facts are established, it will be a question of re-negotiating
what is renegotiable and recovering what is recoverable," Sanou
said on state TV. 
    "When we go into negotiations with the companies, it is
possible that we will obtain 300 to 400 billion," he said.
    Mining Minister Amadou Keita said that some state losses
have been caused by mining companies taking their gold ore to a
different, tax-exempt mine to be processed, and that the new
code would crack down on this. 
    He also said that greater attention would be paid to the
issuance of mining titles. 
    "From now on, for the sake of transparency and
inclusiveness, mining titles will be signed by several ministers
(finance, mining, environment, etc.)," he said on state TV. 
    Goita overthrew two presidents in 2020 and 2021 in coups
driven by frustration at the handling of an Islamist insurgency,
which has only worsened since his military government took
power. He has said he will organise elections and restore power
to civilians in 2024. 
    

($1 = 603.2500 CFA francs)

 (Reporting by Tiemoko Diallo; Writing by Nellie Peyton; Editing
by Sharon Singleton)
 ((nellie.peyton@thomsonreuters.com;))