Mali Suspends Foreign Artisanal Mining Permits Following Fatal Incidents
Mali has suspended new artisanal mining permits for foreigners in response to fatal accidents. Following deadly incidents, the government has taken steps to enhance safety measures and revise mining regulations. Ongoing negotiations with international companies aim to resolve disputes and improve state revenue from the mining sector.
The Government of Mali has enacted a suspension on new artisanal mining permits allotted to foreign nationals due to a number of fatal accidents. This decision emerged from a recent Council of Ministers meeting and follows two tragic incidents: a mine collapse on February 15, which resulted in 43 deaths, and a flooded tunnel on January 29, leading to an additional 13 fatalities.
In a bid to enhance safety protocols, Interim President Assimi Goita has directed measures aimed at preventing future human and environmental tragedies, as stated by General Daoud Aly Mohamedinne, Minister of Security and Civil Protection. These measures include the prohibition of local councils from issuing artisanal mining licenses to foreign individuals and the confiscation of machinery used in small-scale gold extraction.
Mali, recognized as a significant gold producer, is home to operations conducted by international mining firms such as Barrick Gold, B2Gold, and Resolute Mining. Following a military coup in 2020, the current leadership has committed to reforming the mining sector to ensure enhanced state revenue as a response to elevated gold prices. This has led to tensions with foreign companies, including an ongoing negotiation with Barrick Gold.
A recent agreement achieved last month might resolve a two-year conflict concerning mining operations in Mali. Furthermore, with pending reforms, Mali anticipates receiving CFA Fr750 billion (approximately $1.2 billion) from mining companies in the first quarter of 2025, thanks to the introduction of a new mining code. However, Mali’s industrial gold production is projected to decline by 23% in 2024, highlighting the ongoing challenges within the mining industry. Gold mining CEOs assert that these regulatory changes will require adjustments for forthcoming investments in Mali’s gold sector.
In summary, Mali’s decision to suspend new artisanal mining permits for foreign nationals aims to enhance safety measures following tragic incidents. The government seeks to revamp the mining sector to improve state benefits from gold production while negotiating with foreign companies to resolve disputes. With anticipated financial inflows and ongoing industry challenges, reforms will be crucial for future investment.
Original Source: www.mining-technology.com
