Mali has suspended issuance of new mining permits to foreign companies following a fatal mining accident that resulted in over 40 deaths. The decision is part of efforts to enhance safety regulations in the mining sector while also aiming to increase state benefits from gold production through significant reforms and renegotiation of contracts.
Mali, recognized as Africa’s second-largest gold producer, has recently suspended the issuance of new mining permits to foreign companies. This decision, prompted by a tragic mining accident that resulted in the deaths of over 40 miners, underscores the government’s commitment to enhancing safety standards within the mining sector, which has been under scrutiny due to recent tragedies.
The Council of Ministers in Mali has announced a ban on the issuance of artisanal mining permits to foreigners. This action is part of an investigation into a disastrous collapse of an illegal gold mine that killed primarily women near Kéniéba in the Kayes region. The incident has led to a reassessment of mining regulations and the implementation of punitive measures against those responsible for the oversight.
In a separate but related incident, another mining disaster occurred in late January, where a tunnel flood claimed 10 lives. In response, Mali’s government has taken measures to seize equipment used in small-scale mining operations and dismissed local authorities involved in overseeing these operations. These actions reflect a determined stance towards improving mining safety and preventing future tragedies.
In 2020, following a military takeover, Mali’s leadership committed to reforming its mining sector primarily to increase state revenue from gold production. Investigations disclosed significant tax evasion by multinational mining companies, prompting President Goïta to initiate revisions to the mining code. These changes facilitated contract renegotiations, ultimately generating over $1 billion in revenue for the state.
Mali’s mining sector heavily relies on foreign investment, with prominent international companies such as Barrick Gold, B2Gold Corp, and Resolute Mining operating within its borders. Despite the substantial contributions of this sector, it continues to face challenges, including disputes with foreign firms and ongoing issues surrounding tax compliance. Recent reforms aim to enhance government revenues by an estimated $950 million annually, helping to alleviate Mali’s national debt and fund essential military acquisitions.
In conclusion, Mali’s decision to suspend new mining permits for foreign companies marks a significant shift in its approach to mining safety and regulation. This move follows a series of tragic accidents and is part of broader reforms to increase government revenue from the mining sector, thereby enabling more robust economic support. The commitment to safety and financial integrity reflects Mali’s intention to stabilize and grow one of its key economic sectors while addressing the concerns arising from prior mining practices.
Original Source: africa.businessinsider.com
