Mali has halted the issuance of new mining permits to foreign companies following a tragic mining accident that claimed over 40 lives. The government aims to reform the mining sector to enhance safety and increase state benefits from gold production. Key reforms are expected to yield an additional $950 million annually for Mali’s economy.
Mali, recognized as Africa’s second-largest gold producer, has halted the issuance of new mining permits to foreign companies. This decision stems from a recent tragic mining accident that resulted in the loss of over 40 lives, leading the government to reassess its mining regulations and enhance safety protocols. Additionally, Mali’s Council of Ministers has banned the issuance of artisanal mining permits to foreigners while investigations into the incident take place.
The accident, which occurred last month in the Kayes region near Kéniéba, involved the collapse of an illegal gold mine, resulting in at least 43 fatalities, predominantly amongst women. The site had previously been operated by a Chinese firm and underscores the perilous nature of artisanal mining within the country. Notably, this incident marked the second deadly mining disaster in a short span, following another tragedy that killed at least ten people earlier this year.
In reaction to these calamities, the Malian government has taken decisive actions, including seizing equipment linked to small-scale mining operations and dismissing local officials associated with the accidents. These measures aim to bolster safety accountability in the sector.
In the wake of power seizures by military leaders in 2020, Mali has sought to reform its mining laws to secure better economic benefits from gold production. An audit pointed to significant tax avoidance by multinational corporations, prompting President Goïta to revise the mining code. This led to the renegotiation of contracts and the potential release of over $1 billion in additional revenue for the nation.
Foreign investment plays a pivotal role in Mali’s mining sector, with significant contributions from companies such as Barrick Gold and B2Gold Corp. However, challenges persist, including disputes with foreign companies and continued concerns over tax compliance. The reforms are expected to add roughly $950 million to Mali’s annual revenue, impacting the national budget positively and allowing for debt repayment and military purchases.
In conclusion, Mali’s suspension of new mining permits to foreign firms is aimed at increasing safety and state revenue following recent tragic incidents. The government’s reforms in the mining sector, alongside the suspension of artisanal permits for foreigners, reflect a significant shift towards enhanced regulation and improved oversight. The anticipated financial benefits from the reforms are projected to bolster Mali’s economy and address existing challenges in the sector.
Original Source: africa.businessinsider.com
