This is according to a draft of the new code seen by Reuters.

The government announced the review of the mining code in January after it said an internal audit had shown that Mali, one of Africa's biggest gold producers, was not receiving a fair share of profits while granting too many tax breaks.

The draft, dated June 17 and verified by three sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments.

It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.

International investors would have to cede a 5% stake to locals, the document said.

Mali's current mining law, passed in 2019, gives the state the right to 10% with the possibility of acquiring a further 10% stake.

A separate bill within the law would ensure miners employ more locals to top positions, transfer skills and technology, and place a cap on expatriate salary costs, the sources said.

A spokesman for Mali's mines ministry declined to comment on the draft, saying no law has been proposed so far to the country's transitional parliament.

Barrick Gold, the world's No. 2 gold miner, and Canadian rival B2Gold  are among the biggest producers and have been expanding output in Mali, even amid frequent changes in government and rising insecurity.

The two are among a number of miners taking part in talks with the government, which is keen to claw more revenue from a sector that has remained attractive despite coups and a deadly Islamist insurgency.

--Reuters--