Junta-led Mali signs seven new mining deals under revised code to boost revenue

Mali’s military government has approved seven new agreements with international and local mining companies, strengthening state participation and revenues as part of its efforts to increase income from the sector.

The Council of Ministers endorsed the exploitation and exploration deals on Friday, according to an official statement, granting the state a guaranteed, non-reducible stake in mining projects with priority access to dividends.

The agreements cover major gold projects, including the Sadiola mine operated by an Allied Gold subsidiary, B2Gold’s Fekola mine, Resolute Mining’s Syama site, and Ganfeng Lithium’s Bougouni project.

In recent years, Mali’s transitional military-led government has sought to tighten its grip on the mining sector, framing the move as part of its broader push for resource sovereignty and national development.

The country’s 2023 mining code raised royalties to 10% from 6.5% and expanded state and local ownership in mining projects to at least 35%, up from 20%.

It triggered a wave of pushback from miners and has been blamed for a 23% drop in Mali’s gold production last year, which fell to 51 metric tons.

However, in July, three gold producers, including London-listed Endeavour Mining, agreed to adopt Mali’s controversial new mining code. While the three companies represent a small slice of the country’s total output, their compliance marks a notable development.

Meanwhile, Canadian miner Barrick Gold remains locked in a legal dispute with the Malian government.

Tensions flared in January 2025 when Barrick suspended operations at its Loulo-Gounkoto complex after authorities seized gold stocks stored on-site.

Loulo-Gounkoto is among Mali’s most productive gold mines and a vital source of export revenue. Before the shutdown, it contributed around 15% of Barrick’s total global output.

Though Mali remains one of Africa’s top gold producers, growing regulatory uncertainty has dampened investor confidence and cut into output.