Mali Suspends Artisanal Mining Permits for Foreigners After Fatal Accidents

The Malian Government has suspended new artisanal mining permits for foreigners following fatal accidents, including a mine collapse that killed 43. The government is also dismissing implicated officials and halting licenses to foreigners. Mali plans to implement a new mining code, anticipating increased revenue despite recent production declines.

The Malian Government has recently announced the suspension of new artisanal mining permits for foreign nationals due to a series of tragic accidents. These included a mine collapse on February 15 that resulted in the deaths of 43 individuals, and a flooded tunnel incident on January 29 that claimed an additional 13 lives, as reported by Reuters. In response, the government also decided to dismiss several administrative and security officials associated with these incidents.

During a Council of Ministers meeting, Interim President Assimi Goita emphasized the need for enhanced measures to prevent such tragedies. General Daoud Aly Mohamedinne, the Minister of Security and Civil Protection, noted that the government has halted local councils from issuing mining licenses to foreigners and has mandated the confiscation of all machinery used in small-scale gold extraction.

Mali, recognized as a leading gold producer, hosts mining operations of international firms such as Barrick Gold, B2Gold, and Resolute Mining. Following a military coup in 2020, Mali’s leadership has been attempting to reform the mining sector, aiming to leverage high gold prices for greater state benefit, which has at times resulted in disputes with foreign companies like Barrick Gold. Nevertheless, a new agreement with Barrick Gold, reached last month, is expected to resolve a lengthy dispute involving mining operations.

Furthermore, Mali anticipates receiving CFA Fr750 billion (approximately $1.2 billion) from mining companies in the first quarter of 2025 as part of its sector reforms and a new mining code. Despite these developments, the country has experienced a 23% decline in industrial gold production year-over-year in 2024, highlighting the significant challenges within the mining industry. Executives from gold mining companies indicated that these adjustments necessitate reevaluating their future investments in Mali’s gold sector.

In conclusion, the Malian Government’s decision to suspend new artisanal mining permits for foreign nationals reflects its commitment to addressing recent fatal incidents in the mining sector. The dismissal of officials linked to these accidents, alongside new regulatory measures and agreements with foreign companies, indicate a significant shift in Mali’s mining policies. As the country aims to benefit from its gold resources amidst ongoing challenges, future investments in the sector will need to adapt in response to new regulations.

Original Source: www.mining-technology.com