Mali Recovers $1.2 Billion in Mining Arrears Under New Code

Mali has recovered 761 billion CFA francs ($1.2 billion) in arrears from mining companies following a sweeping audit of the sector, marking one of the country’s largest clawbacks from its extractive industry. The announcement was made late Monday by Economy and Finance Minister Alousséni Sanou, who presented the audit report to President Assimi Goita on state television.

The military-led government launched the audit in early 2023, uncovering massive shortfalls for the state and paving the way for a new mining code. The legislation, adopted later that year, raised royalties, boosted state stakes in mining companies, and scrapped stability clauses that had previously shielded operators from fiscal changes.

The audit, conducted by firms Inventus and Mozar, flagged irregularities and estimated losses for the state at between 300 and 600 billion CFA francs. A recovery commission was subsequently established, leading to settlements with several major operators including B2Gold, Allied Gold, Resolute Mining, Endeavour Mining, and lithium producers Ganfeng and Kodal.

The overhaul also triggered a two-year dispute with Canadian miner Barrick Mining, Mali’s largest gold producer, before a deal was reached in November. Sanou did not specify whether the recovered sum included Barrick’s recent 244 billion CFA francs settlement.

“I am delighted with these results, among which we can mention the recovery of 761 billion CFA out of a target of 400 billion,” Sanou said, adding that all mining companies will now operate under the 2023 code. He noted that the new regime is expected to lift annual revenues by 586 billion CFA francs from audited firms alone, bringing their total contribution to about 1,022 billion CFA francs each year.

Audit and legal costs amounted to 2.87 billion CFA francs, according to the ministry. Mamou Touré, a member of the renegotiation committee, emphasized that the goal was not only to recover funds but also to secure a substantial state stake in mining contracts.

Mali, the second-largest gold producer in Africa in 2023 according to World Gold Council data, relies heavily on mining for export earnings and fiscal revenues. However, tighter oversight has squeezed growth, with industrial gold output falling 32 percent year-on-year to 26.2 metric tonnes by the end of August.