Mali Recovers $1.2 Billion in Unpaid Mining Dues After Major Audit and Code Overhaul
BAMAKO – The Malian government has recovered approximately $1.2 billion in unpaid taxes and royalties from international mining companies, following a comprehensive 2023 audit that exposed significant payment gaps in the sector.
The audit, which reviewed the financial records of mining operators, identified irregularities estimated between $500 million and $1 billion. These findings prompted a major policy shift, leading to the adoption of a new mining code last year. The revised code increases royalty rates, mandates higher state ownership in projects, and eliminates long-term tax stability clauses that had previously protected companies from fiscal changes.
The recovery process involved sometimes protracted disputes with several major firms. The most notable was a two-year standoff with Barrick Gold, Mali’s largest gold producer. The dispute was resolved in November with a settlement, though it remains unclear if Barrick’s payment—reportedly around $400 million—is included in the total $1.2 billion announced.
Other prominent operators have also settled their arrears under the new regulatory framework. These include gold producers B2Gold, Allied Gold, Resolute Mining, and Endeavour Mining, as well as lithium companies like China’s Ganfeng and UK-based Kodal Minerals.
The government asserts that the tougher fiscal terms and improved enforcement will significantly boost state revenue from its mineral wealth, which is dominated by gold. Under the 2023 mining code, annual mining revenues are projected to rise above $1.6 billion.
This aggressive fiscal move is part of a broader trend across resource-rich West African nations seeking a greater share of mining profits. While the government hails it as a victory for economic sovereignty, industry observers note it introduces higher risks and costs for operators, potentially affecting future investment in Mali’s mining sector.
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