Mali’s gold production fell by 23% in 2024, decreasing from 66.5 tons to 51 tons. This reduction is attributed to a dispute between Barrick Gold and the Mali government, coupled with a new mining code that raises taxes and demands state ownership. The output dipped below 60 tons for the first time in over three years, potentially leaving total production at 58.7 tons.
Mali’s gold production experienced a significant decline of 23% in 2024, falling from 66.5 metric tons in 2023 to 51 metric tons, as reported by the mines ministry. As one of Africa’s leading gold producers, Mali hosts several international mining companies, such as Barrick Gold, B2Gold Corp, and Resolute Mining. However, the production figures do not account for Barrick Gold’s December output due to ongoing disputes with the Mali government over a new mining law introduced last year.
Barrick Gold halted its operations at the Loulo-Gounkoto mine following government intervention and the seizure of its gold reserves. The tensions have led to the detention of four Barrick employees on serious charges, including money laundering, which the company refutes. The alterations in Mali’s mining code, which escalate taxation and require substantial state ownership of assets, have discouraged investment in new projects, according to executives in the mining sector.
The Mali government contends that mining companies, including Barrick, are not fulfilling their tax obligations adequately. Notably, Mali’s gold production dipped below 60 tons for the first time in over three years, with projections indicating it would have reached 52.7 tons if Barrick met its production forecast for December. The reduction in output has been linked to the ongoing conflict with mining companies, causing a decline in industry confidence.
As reported, excluding December’s production, Barrick Gold remains the foremost gold producer in Mali with 19.4 tons, followed by B2Gold and Resolute Mining, which produced 13.7 tons and 7.2 tons, respectively. Additionally, artisanal mining activities contributed an estimated 6 tons, bringing the total gold production in Mali for 2024 to approximately 58.7 tons, according to ministry estimates.
The substantial decrease in Mali’s gold production underscores the impact of governmental conflicts with mining companies, particularly highlighted by the relationship between Barrick Gold and Mali’s military-led administration. As the sector grapples with challenges posed by the new mining code and taxation disputes, investor confidence has waned, resulting in the lowest production levels observed in recent years. The future of gold mining in Mali hinges on resolving these tensions and fostering a more stable investment environment.
Original Source: www.marketscreener.com
