As Mali’s mining sector faces growing tensions — highlighted by the recent seizure of gold stocks from the Canadian company Barrick by the military government — questions about economic sovereignty and mining governance have become more relevant than ever.

The mining sector plays a strategic role in Mali’s economy, with gold as its driving force. Yet, governance challenges persist at the heart of the sector’s evolution. In this interview, Mamadou Camara, a mining policy researcher, examines ongoing reforms, the impact of these developments, and the key challenges that must be addressed to ensure the sustainable and equitable exploitation of Mali’s mineral resources.

What role does the mining sector play in the Malian economy?

In 2023, the mining sector contributed 644 billion CFA (about US$1 billion) to Mali’s state budget. This represents 21.5% of Mali’s budget for the year and a slight increase from the previous year.

Gold remains the main product, with a production of 70 tonnes in 2023. Of these revenues, 644 billion CFA came from mining companies (US$1.1 billion), and 3 billion CFA (US$4.7 million) came from social payments — taxes based on employee wages, such as housing tax, flat-rate contributions, and professional training levies.

This highlights the significant role of the mining sector in the country’s economy. Including gold, the extractive sector contributed 6.3% of Malian GDP in 2023, up from 5.9% in 2022.

Exports amounted to 500 billion CFA francs (about US$784 million), accounting for three-quarters of the country’s total export revenue. The sector also created 61,023 new jobs in 2023, including 10,000 direct jobs.

Since 2013, Mali has been facing a security and political crisis that has led to coups d’état and the occupation of part of its territory by rebel groups. Amid this crisis, mining revenues have played a key role in financing major infrastructure projects.

These investments have built and maintained schools, health centres, roads and bridges, strengthening trade.

Today, the sector is increasingly seen as a pillar of national sovereignty, a key objective for Malian authorities. In 2023, the government issued 12 new exploration licences, prioritising Malian companies while also granting some permits to foreign firms.

Estimating the volumes extracted in the informal mining sector remains highly complex. Many actors operate outside formal regulatory frameworks, making precise data collection difficult.

What are the key changes in Mali’s new mining code and their expected impact?

The 2023 mining code reflects Mali’s ambition to increase its gains from mining, promote more inclusive local development, and strengthen sovereignty (control) over its natural resources. It emphasises “local content”.

With the introduction of specific legislation on local content, the new mining code prioritises the inclusion of Malian businesses and workers in the extractive sector.

The law sets clear guidelines for their participation and representation.

This initiative could boost local employment and strengthen the national economy. The authorities want Malians to directly feel the benefits of mining. Mining operators are now required to contribute 0.75% of their quarterly revenue to a local development fund. The new code also revises tax exemptions, particularly for fuel, to maximise state revenue.

As a strategic move, Mali now aims to increase its stake in mining projects. The state is set to secure an initial 10% share in any project, and it may get an additional 20% during the early years of production.

With 5% allocated to the Malian private sector, the total share could reach 35%, compared to the current 20%. This approach is expected to generate an additional 500 billion CFA francs (approximately US$784 million) for the national budget.

Mali has also restructured the duration and terms for granting mining licences. The new code allows for better resource exploitation. Large mines are now granted renewable permits for 12 years, while exploration licences are issued for a maximum of nine years.

Before the new mining code was adopted in 2023, exploration licences were granted for an initial period of three years, with the possibility of two renewals of three years each, totalling a maximum duration of nine years.

These changes aim to encourage more intensive and structured resource exploration.

What are the main challenges facing Mali’s mining sector?

The rise of the mining industry has brought both benefits and challenges. To manage these, the players involved have decided to develop a community development policy. This approach aims to create income opportunities while mitigating potential negative effects, such as environmental damage caused by mining operations.

Adaptation strategies are essential. These include improving access to financing, creating joint economic activities, and ensuring the security of mining zones. Other key areas are land management, housing, healthcare and schooling, as well as supporting public policies, programmes and civil society initiatives.

Artisanal gold mining has environmental impacts: it causes deforestation and pollution. Cutting trees destroys wildlife habitats, harms useful plant species and weakens the soil.

Pollution is another major concern. Chemicals contaminate water, soil, plants, animals and people. Air pollution is common due to overcrowding around mining sites.

The mining industry affects the economy, environment and society. It is a very important source of revenue for the country and it provides direct and indirect jobs to many people through the provision of services to companies operating in this sector.

To limit harm, mining communities should focus on four goals:

increase productivity by building the capacity of stakeholders

reduce the socio-economic vulnerability of local communities

strengthen stakeholders’ resilience to the effects of mining industry development

improve biodiversity conservation and mitigate environmental degradation.

How can Mali improve mining governance and sustainability?

The new mining code already improves governance by addressing the legitimate expectations of Mali’s population and government. It promotes a more responsible approach to managing the sector.

This code ensures that mining benefits are shared fairly among all stakeholders, including local communities, authorities and mining companies.

Mali is rich in mineral resources. The country has vast untapped potential throughout its territory. However, security issues in the north hinder exploration and mining activities. Some areas remain unassigned to companies due to ongoing insecurity.