Mali’s gold production fell by 23% to 51 metric tons in 2024, as conflicts arise from a new mining code and a dispute with Barrick Gold. The country, which relies on foreign investment for gold mining, faces a crisis of confidence in the sector amid rising taxes and suspensions of operations.
Mali’s industrial gold production experienced a significant decline of 23% in 2024, falling to 51 metric tons from 66.5 metric tons in the prior year, as reported by the country’s mines ministry. As one of Africa’s major gold producers, Mali hosts industrial operations run by international enterprises such as Barrick Gold, B2Gold Corp, Resolute Mining, and Hummingbird Resources.
A ministry document cited that this production figure does not account for Barrick Gold’s output in December, which was omitted due to a dispute with Mali’s military-led government regarding a newly implemented mining law. Barrick had previously suspended activities at its Loulo-Gounkoto site following a government seizure of its gold reserves using a helicopter. Additionally, four of its employees remain in custody on allegations of money laundering and terrorism financing, all of which Barrick denies.
The newly instituted mining code in Mali has drawn criticism from several mining executives, who claim it imposes higher tax rates and mandates a significant transfer of asset stakes to the state, thus creating an unfavorable investment environment. The government’s stance indicates that firms like Barrick have not contributed adequately in terms of taxation.
The ministry reported that Mali’s gold production has fallen below 60 tons for the first time in over three years. If Barrick had met its projected production of 1.7 tons in December, the output would have been roughly 52.7 tons. However, the ministry did not clarify the reasons for the production decrease. A ministry official suggested that the ongoing conflict with mining firms could have contributed to this reduced output, pointing to a broader crisis of confidence in the sector following governmental demands for compliance with the new mining regulations.
Barrick Gold remains the largest gold producer in Mali, producing 19.4 tons in 2024 (excluding December’s figures), followed by B2Gold with 13.7 tons and Resolute Mining at 7.2 tons. The ministry’s data also noted that with approximately 6 tons extracted from artisanal mines, Mali’s overall gold production for 2024 is projected at 58.7 tons.
The significant decline in Mali’s gold production highlights ongoing tensions between the government and international mining companies. The introduction of a new mining code has contributed to a challenging investment climate, evidenced by Barrick Gold’s operational disruptions and the overall reduction in production output. Moving forward, addressing these issues will be crucial for the stability and future growth of Mali’s mining sector.
Original Source: www.marketscreener.com
