Mali secures key mining code win as three major gold producers sign on

Mali has achieved a breakthrough in its push for greater control over its mineral wealth,with three gold producers — Endeavor Mining,Faboula Gold,and Bagama Mining — agreeing to operate under the country’s controversial 2023 mining code.

Announced by Finance Minister Alousseni Sanou in a televised address,the agreement marks a rare win for Mali’s military-led government in its ongoing battle to enforce sweeping mining reforms. The companies signed a memorandum of understanding,though the terms remain undisclosed. The revised code increases taxes,mandates a minimum 20% state stake in all mining ventures,and imposes stricter environmental and compliance rules. Officials argue the changes will bolster state revenues and local development. However,the reforms have been blamed for a 23% drop in gold output last year,with production falling to 51 metric tons.

While Endeavor’s Somika project has yet to begin production,Faboula and Bagama each produce 500 kg annually. All three firms are expected to create 2,000 jobs apiece. Somika’s mine is projected to generate about $239 million annually over its 10-year lifespan. Meanwhile,tensions with Mali’s top gold producer,Barrick Gold,remain high. The Canadian miner suspended operations in January following a government gold seizure and is now pursuing arbitration at the World Bank’s ICSID. Despite regulatory uncertainty,the latest signings may signal a gradual easing of investor-government friction in one of Africa’s leading gold economies.