Mali has recovered 761 billion CFA francs ($1.2 billion) in unpaid arrears from mining companies following a wide-ranging audit of the sector, marking one of the largest financial recoveries from the country’s extractive industry, according to the government.
The military-led administration launched the audit in early 2023 after uncovering major revenue shortfalls that ultimately led to the introduction of a new mining code.
The law increased royalties, expanded the state’s ownership stakes in mining projects, and removed stability clauses previously enjoyed by operators.
A recovery commission was created after audit firms Inventus and Mozar identified financial irregularities and losses to the state estimated between 300 billion and 600 billion CFA francs, according to Reuters
The sweeping reform sparked a two-year dispute with Mali’s largest gold producer, Canada’s Barrick Mining, which was resolved through a settlement reached in November.
Speaking late Monday on state television, Economy and Finance Minister Alousséni Sanou did not confirm whether the recovered sum includes Barrick’s recently announced 244 billion CFA francs settlement.
He noted that several other companies, including B2Gold, Allied Gold, Resolute Mining, and Endeavour Mining, as well as lithium operators Ganfeng and Kodal, had already cleared their arrears and transitioned to the new regulatory framework.
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“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 where the audit findings were presented to President Assimi Goita.
He added that all mining companies will now operate under the 2023 mining code, which is projected to increase annual revenue from audited firms alone by 586 billion CFA francs, bringing total yearly contributions to about 1,022 billion CFA francs.
Sanou said the costs associated with conducting the audits and related legal actions amounted to 2.87 billion CFA francs.
Mamou Touré, a member of the renegotiation committee, explained that the initiative was designed not only to recover lost revenue but also to secure larger state ownership positions in mining contracts. Mali, one of Africa’s leading gold producers, depends heavily on mining for export earnings and government revenue.
However, increased regulatory scrutiny has weighed on production, with industrial gold output falling 32% year-on-year to 26.2 metric tons by the end of August.
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Image Credit: African Mining Market
