Mali Recovers $1.2 Billion from Mining Companies Following Audit

Mali recovered 761 billion CFA francs from mining companies after a 2023 audit, leading to a new mining code that raises royalties and state stakes. Companies like Barrick and B2Gold settled arrears, boosting expected annual revenues by 586 billion CFA francs. Stricter oversight has reduced gold output by 32% to 26.2 tonnes.

Mali has successfully recovered 761 billion CFA francs ($1.2 billion) in arrears from mining companies following a comprehensive audit, according to the country’s finance minister, marking one of the largest recoveries in the nation’s extractive sector. The military-led government initiated an audit of Mali’s mining sector in early 2023, uncovering significant shortfalls for the state and setting the stage for the introduction of a new mining code.

The newly implemented mining law increased royalties, enhanced state stakes in mining companies, and removed stability clauses. Following the audit by firms Inventus and Mozar, which identified financial irregularities and state shortfalls estimated between 300 and 600 billion CFA francs, a recovery commission was established to address the discrepancies.

The industry overhaul led to a two-year dispute with Canadian miner Barrick Mining, Mali’s largest gold producer, before a resolution was reached in November. Economy and Finance Minister Alousséni Sanou, speaking on state television late Monday, did not specify whether the recovered amount included Barrick’s recent 244 billion CFA francs settlement. Other companies, including B2Gold, Allied Gold, Resolute Mining, Endeavour Mining, and lithium operators like Ganfeng and Kodal, settled their arrears and transitioned to the new regulatory framework earlier.

“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 during a ceremony presenting the audit report to President Assimi Goita.

Sanou further explained that all mining companies will now operate under the 2023 code, which is projected to increase annual revenues by 586 billion CFA francs from the audited firms alone, bringing their total contribution to approximately 1,022 billion CFA francs each year. Audit and legal expenses for the process amounted to 2.87 billion CFA francs.

Mamou Touré, a member of the renegotiation committee, emphasized that the initiative aimed not only to recover funds but also to secure a significant stake for the state in mining contracts. Mali, as one of Africa’s leading gold producers, depends heavily on the mining sector for export earnings and government revenues. However, the intensified oversight has affected production, with industrial gold output declining 32% year-on-year to 26.2 metric tonnes by the end of August.