Mali Recovers $1.2B in Mining Arrears, Eyes Annual Windfall Under New Code

The Loulo-Gounkoto gold complex. (Image: Barrick.)

Top Companies Africa Gold

Mali has clawed back 761 billion CFA francs ($1.2 billion) in arrears from mining companies following a sweeping sector audit, marking one of the country’s largest recoveries from its extractive industries. The announcement underscores the military-led government’s push to tighten oversight and boost fiscal returns from mining, a sector central to Mali’s economy.

Audit Uncovers Shortfalls, Spurs New Code

Launched in early 2023, the audit revealed massive financial gaps in state revenues, prompting the introduction of a new mining code. The legislation raised royalty rates, increased state equity in mining ventures, and scrapped stability clauses that had previously shielded operators from fiscal changes.

The audit, conducted by firms Inventus and Mozar, flagged irregularities estimated between 300 and 600 billion CFA francs. A recovery commission was subsequently established to enforce compliance and renegotiate contracts.

Disputes and Settlements

The overhaul triggered a two-year dispute with Canadian miner Barrick Gold (TSX: ABX), Mali’s largest gold producer, before a settlement was reached in November. Economy and Finance Minister Alousséni Sanou did not confirm whether Barrick’s 244 billion CFA francs settlement was included in the recovered sum.

Other operators—including B2Gold (TSX: BTO), Allied Gold (TSX: AAUC), Resolute Mining (ASX: RSG), Endeavour Mining (LON: EDV), and lithium producers such as Ganfeng (SZ:002460) and Kodal Minerals (LON: KOD)—have already settled arrears and transitioned to the new regime.

Fiscal Impact

Sanou, speaking on state television, hailed the recovery as exceeding expectations: “We have recovered 761 billion CFA out of a target of 400 billion.” He added that under the 2023 code, audited firms alone are projected to contribute 1,022 billion CFA francs annually, representing an additional 586 billion CFA francs in yearly revenues.

Audit and legal costs totaled 2.87 billion CFA francs, a fraction of the recovered amount. Mamou Touré, a member of the renegotiation committee, emphasized that the reforms aim not only to recover funds but also to secure greater state participation in mining contracts.

Sector Outlook

Mali, one of Africa’s leading gold producers, relies heavily on mining for export earnings and fiscal revenues. However, tighter oversight has weighed on production, with industrial gold output falling 32% year-on-year to 26.2 metric tons by end-August.

The government is also advancing plans for a Russia-backed gold refinery, signaling its intent to capture more value from domestic production and reduce reliance on external processing.