Announced by Mali’s Minister of Mines, Amadou Keita, the deal secures a 35% stake for the country in the Korali-Sud mining project. This initiative, tied to the Sadiola gold mining operation, will function under Mali’s updated 2023 mining code, which aims to maximise national benefits from the country’s rich mineral resources.
The Korali-Sud project is projected to generate an annual turnover of $188 million, significantly boosting Mali’s GDP and fiscal revenues.
According to Dr. Zoumara Diarra, a political and economic analyst from the University of Bamako, the deal is vital for Mali’s economic growth, as it aligns with the government's strategy to ensure that local communities and the nation at large benefit from its mining wealth.
The Korali-Sud project is expected to produce approximately 200 000 ounces of gold annually. Beyond government dividends and tax revenues, the new venture promises substantial benefits for surrounding communities.
As part of Mali’s legal framework for local content, 0.775% of each mining company’s quarterly sales will fund national, regional, and communal development initiatives.
Diarra noted that local service providers and suppliers will also gain from the project, with measures in place to prioritise local businesses in line with the country’s local content consultation framework (CCL).
Employment opportunities are expected to expand, with the government focused on ensuring that job creation benefits Malians directly.
To address concerns about transparency in fund allocation, Mali has established mechanisms such as the local content consultation framework, which operates under the Presidency.
Civil society organisations, including the Extractive Industries Transparency Initiative, will monitor the use of funds to ensure accountability. Financial institutions are also tasked with auditing and verifying financial operations within the mining sector.
While the Korali-Sud project is hailed as a milestone, Mali’s new mining code has faced resistance from companies like Barrick Gold, which are in disputes with the government over the regulations.
Despite these challenges, Diarra sees the agreement with Allied Gold Corp as a signal that international companies remain committed to operating in Mali under the updated legal framework.
The 2023 mining code not only grants the government and private entities up to 35% stakes in projects but also mandates the establishment of funds to support infrastructure, education, and healthcare. These provisions aim to create a sustainable model that can be replicated in other mining projects, including the burgeoning lithium sector.
--ChannelAfrica--
