Mali Finalizes Seven New Mining Deals Under Revised Code, Boosting State Revenue and Participation

Mali Approves Landmark Mining Agreements

In a significant move to bolster its control and revenue from the vital mining sector, Mali's Council of Ministers approved seven new mining agreements on Friday, September 19, 2025. These agreements fall under the nation's revised 2023 Mining Code and are designed to increase state participation and financial benefits from both international and local mining operations. The approvals mark a further step in the military-led government's strategy to enhance income from its natural resources.

Key Provisions of the Revised Mining Code

The new mining code, adopted on August 8, 2023, and further detailed by an implementing decree on July 9, 2024, introduces substantial changes aimed at maximizing Mali's share of mining wealth. Key provisions include:

• Increased State Participation: The state's minimum ownership in mining projects has been raised from 20% to 35%. This includes a 10% free carried interest, an option to purchase an additional 20%, and a further 5% stake that can be ceded to local interests. This stake is non-reducible, ensuring the government's interest cannot be diluted.
• Higher Royalty Rates: Royalty rates have been increased from 6.5% to 10%, directly boosting government revenue.
• Priority Dividend Access: The Malian government is granted priority access to dividends, ensuring its share of profits is received before distribution to other shareholders.
• Abolition of Tax Exemptions: Certain tax exemptions previously enjoyed by mining companies have been abolished.
• Local Content Requirements: The code mandates local hiring and procurement, requiring foreign subcontractors and suppliers to have 35% Malian ownership and prioritizing Malian companies for goods and services.

Major Projects and Companies Involved

The newly approved agreements encompass several significant mining operations, primarily focusing on gold and lithium. These include:

• The Sadiola project, operated by Allied Gold.
• B2Gold's Fekola Mine.
• Resolute Mining's Syama site.
• The Bougouni lithium project, involving Ganfeng Lithium.

These finalized contracts build upon preliminary agreements that were reached with the same companies between September and November 2024.

Context and Industry Response

The approval of these deals is part of Mali's broader economic strategy centered on resource nationalism, aiming to ensure that the country's natural resources primarily benefit its citizens. This approach aligns with a geopolitical realignment away from traditional Western partners. While some companies, such as Endeavour Mining, have already adopted the terms of the revised code, others have expressed concerns. The new code has been cited as a factor in a 23% drop in Mali's gold production last year, which fell to 51 metric tons. Notably, Canadian miner Barrick Gold remains in a long-running standoff with the Malian government over the regulatory changes.