Mali has suspended new artisanal mining permits for foreigners due to recent fatal accidents. The government dismissed several officials linked to these incidents and plans to enforce stricter regulations. Despite challenges, Mali expects substantial revenue from mining companies, signaling ongoing reforms within the sector.
The Government of Mali has issued a suspension on new artisanal mining permits for foreign nationals due to a series of tragic incidents, according to a report by Reuters. This decision was announced during a recent Council of Ministers meeting, where the administration also decided to dismiss several officials involved in the incidents. This action was prompted by two significant accidents: one on February 15 that led to the deaths of 43 individuals, and another on January 29 that resulted in 13 fatalities due to a flooded tunnel.
Interim President Assimi Goita has mandated the government to enhance measures aimed at preventing further human and environmental disasters, as stated by Minister of Security and Civil Protection, General Daoud Aly Mohamedinne, and reported by Bloomberg. Additional measures will include prohibiting local councils from issuing artisanal mining licenses to foreign entities and seizing any machinery utilized for gold extraction in small-scale mines.
Mali, recognized as a prominent gold producer, accommodates operations from international firms such as Barrick Gold, B2Gold, Resolute Mining, and Hummingbird Resources. Following a military coup in 2020, the Malian authorities have sought to reform the mining sector to ensure greater national advantages amid soaring gold prices. These reforms have led to disputes with foreign corporations, notably an ongoing situation with Barrick Gold, although a recent agreement may resolve a two-year conflict concerning the company’s operations within the nation.
Mali anticipates generating CFA Fr750bn ($1.2bn) from mining firms in the first quarter of 2025, following the introduction of new regulations, including a revised mining code. Despite these measures, the industrial gold production in Mali experienced a 23% decline year-on-year in 2024, indicating the difficulties faced by the sector. Additionally, executives from gold mining companies have indicated that these changes may require adjustments for prospective investments in Mali’s gold industry.
In conclusion, the Malian Government’s suspension of new artisanal mining permits for foreign nationals aims to address safety concerns following deadly incidents. Alongside dismissing implicated officials, the government is implementing stricter regulations to protect both human lives and the environment. As Mali navigates the complexities of mining sector reforms, it anticipates significant financial returns while facing inherent challenges in gold production.
Original Source: www.mining-technology.com
