Mali will partially lift its suspension on the issuance of mining permits starting March 15, as announced by the country’s mines ministry on Friday. The move comes after a nearly 16-month hiatus, during which the West African nation focused on overhauling its mining permitting process.
Mali, one of the world’s leading gold producers, had halted the allocation of new mining titles in November 2022, citing the need for reforms and to improve the transparency of the mining registration system. During this period, Mali also introduced a new mining code in 2023, which notably increased taxes on mining companies and granted the government a larger stake in mining assets. This new code is part of broader efforts to ensure that Mali benefits more significantly from its rich natural resources.
According to the mines ministry, the suspension will be eased following “major work to clean up the mining register.” Starting March 15, authorities will begin accepting applications for the renewal of exploration and exploitation permits, as well as applications to transition from exploration to exploitation and to transfer existing exploitation permits. However, the suspension on the issuance of new mining permits and the transfer of exploration permits will remain in effect for the time being.
Concerns have been raised in recent years about unregulated mining in northern Mali, where extremist groups have taken advantage of the industry’s lack of oversight. It is feared that profits from illicit mining activities could be funding these armed groups, further destabilizing the region.
Gold remains Mali’s most important export, making up more than 80% of the country’s total exports as of 2021, according to the U.S. International Trade Administration (ITA). The ITA also reports that over 2 million Malians—more than 10% of the population—rely on the mining sector for their livelihood.
Mali ranks among the top three gold producers in Africa, with several major mining companies operating in the country, including Barrick Gold, B2Gold, Resolute Mining, and Allied Gold. However, the relationship between mining companies and the military-led government has become increasingly tense. The government has been demanding that mining companies comply with the new mining code, which includes higher taxes and increased government ownership of mining projects.
At the end of 2023, tensions escalated when four employees of Barrick Gold, a major Canadian mining company, were imprisoned in Bamako, the capital of Mali. The government also seized 3 tons of gold from Barrick’s mining operations in the country and deposited it in a local bank, further straining relations between the mining industry and the authorities.
The partial lifting of the suspension is seen as a step toward balancing the country’s need for foreign investment in its mining sector with its desire for greater control and oversight of its mineral resources. As Mali continues to reform its mining sector, the government is also focusing on ensuring that the industry contributes more effectively to national development while curbing illegal activities linked to extremist groups.
