The military-led West African nation, one of Africa’s top gold producers, had initially halted the issuance of mining titles in November 2022 to streamline the process.
Dr Zoumara Diarra from the University of Bamako explained that the partial lifting applies to "applications for the renewal of short-term and exploration permits, transitions from exploration to exploitation phases, and the direct or indirect transfer of operating permits."
However, applications for new mining titles and the transfer of research permits will remain suspended.
This policy shift is seen as crucial for boosting gold production and economic growth. "These activities are important not only because they generate revenue for the government but also because they are essential for mining operations," Diarra said.
The new mining code, implemented last year, significantly increases state ownership and taxes in mining projects. Under the new framework, the government receives a 10% free participation in mining ventures, with the option to acquire an additional 20%, bringing its total stake to 50%. Local communities are also allocated a 5% share.
Despite the increased state control, foreign investor sentiment has remained steady. "I didn't see a big protest from investors after the mining code was enforced. The increased governmental benefits are more acceptable to investors than the nationalisation of companies," Diarra noted, citing Canadian mining company Allied Gold as an example, which recently started operations in Mali.
Mali's gold production dropped by 23% in 2024 due to conflicts between the government and certain mining companies, particularly Barrick Gold. Diarra believes the partial lifting of the suspension will reverse this trend. "From my point of view, it will increase production. The conflict has now been resolved, and foreign investors will flock to the doors of the mining ministry," he said.
The lifting of the suspension is set to take effect from 15 March, marking a new chapter for Mali's mining sector.
--ChannelAfrica--
