The Malian Government has suspended new artisanal mining permits for foreigners following deadly accidents, including a recent mine collapse and a flooded tunnel. The government has also dismissed several officials and mandated enhanced safety measures. Mali, a major gold producer, is focused on reforming its mining sector to boost state revenues amid ongoing challenges and declining production.
The Malian Government has instituted a suspension on new artisanal mining permits for foreign nationals due to a spate of fatal incidents. This decision, reported by Reuters, was made during a recent Council of Ministers meeting and included the dismissal of several officials connected to these tragic events. The response follows two catastrophic occurrences: a mine collapse on February 15 that killed 43 people and a flooded tunnel event on January 29, resulting in 13 fatalities.
Interim President Assimi Goita has mandated the government to enhance measures aimed at preventing future human and environmental disasters, as conveyed by Minister of Security and Civil Protection, General Daoud Aly Mohamedinne, in a statement to Bloomberg. Further actions involve prohibiting local councils from granting artisanal mining licenses to foreigners and seizing machinery used for gold extraction in small-scale mining operations.
Mali, known as a significant gold producer, is home to several international mining companies, including Barrick Gold, B2Gold, Resolute Mining, and Hummingbird Resources. Following the military coup in 2020, Mali’s leaders have focused on reforming the mining sector to secure higher state revenues from soaring gold prices, often leading to conflicts with foreign enterprises, particularly Barrick Gold. However, a recent agreement reached with Barrick may help resolve a two-year disagreement over mining operations in the region.
Anticipated revenues from mining companies in the first quarter of 2025 are projected to amount to CFA Fr750 billion ($1.2 billion), stemming from ongoing reforms in the mining sector, which include a revised mining code. Nevertheless, Mali’s industrial gold production has experienced a significant decline of 23% year-over-year in 2024, underscoring the challenges confronting the industry. Mining executives have indicated that these adjustments necessitate careful consideration for future investments in Mali’s gold sector.
The Malian Government’s suspension of artisanal mining permits for foreign nationals primarily aims to address safety concerns following recent tragic accidents. Furthermore, significant reforms in the mining sector underscore the government’s commitment to maximizing national benefits from gold production. Despite the anticipated rise in revenue due to sector reforms, the decline in gold production highlights ongoing challenges that could affect future investment decisions in Mali’s mining sector.
Original Source: www.mining-technology.com
