Mali to Review Mining Contracts With Foreign Companies After Audit

Mali is one of the largest gold producers in the world. According to media reports, its gold exports reached 69.3 tons in 2022 compared to 63.4 tons in 2021. The country’s Ministry of Mining estimates that there are 800 tons of gold deposits; there are also massive deposits of iron ore, manganese, and uranium.

The council of ministers of Mali announced that contracts with mining companies operating in the nation will be reviewed after an audit of the sector since a lion's share of the revenue is not received by the government.

Authorities plan to create a commission for the renegotiation of mining deals with foreign companies, repatriate the money earned from gold exports that was lost on deals, and adopt environmental codes for the mining sector.

"The action plan will be implemented via a participatory approach, including the mining companies themselves," the officials stated.

Among the companies operating in Mali are Barrick Gold Corporation (Canadian), Endeavour Mining (British), Resolute Mining (Australian), and Hummingbird Resources (British).

A call for a review of mining contracts was first made after the 2020 coup in the country. Then nation's interim President Bah N’daw announced the plans after receiving a report from nation's Auditor General Samba Alhamdou Baby.

“The conventions establishing mining companies include clauses which do not always guarantee the protection of the interests of the state. In particular the non-distribution of dividends, the non-payment of certain taxes, to which is added the existence of unjustified loans, all of which deprive the State of financial resources,” Samba Alhamdou Baby was cited by media as saying at the time.