Mali has halted the issuance of new mining permits to foreign firms following a deadly mining accident that claimed over 40 lives. This suspension includes artisanal mining permits and is part of a broader reform effort aimed at improving safety and increasing government revenue from gold production in the sector.
Mali, recognized as Africa’s second-largest gold producer, has decided to suspend the issuance of new mining permits to foreign companies. This significant decision follows a tragic mining accident that resulted in the loss of over 40 lives, prompting the government to reassess mining regulations to prioritize safety and enhance state revenue from gold production.
The Council of Ministers in Mali has banned the issuance of artisanal mining permits to foreigners while investigations into the recent tragedy are underway. This measure emphasizes the government’s commitment to ensuring safety in the mining sector after a catastrophic incident in January that claimed at least 43 lives in the Kayes region, primarily affecting women.
The tragic collapse of an illegal mine near Kéniéba has underscored the dangers associated with artisanal mining in the region. This incident was Mali’s second deadly mining accident in just three weeks, and in response, the government has implemented punitive measures against officials linked to the disasters and confiscated equipment used in small-scale mining.
Since the military takeover in 2020, Mali’s leaders have pledged to reform the mining sector to boost state benefits from gold production. An audit previously revealed widespread tax evasion practices employed by multinational corporations. In reaction, President Goïta initiated revisions to the mining code, resulting in the renegotiation of contracts, thereby releasing over $1 billion in potential revenue.
Mali’s position as the second-largest gold producer in Africa allows it to significantly influence its economy. According to the World Gold Council, Ghana leads production, yielding 135 tonnes from 2010 to 2024, while Mali trails behind. Despite foreign investment dominating the mining sector, recent reforms are anticipated to generate approximately $950 million annually, representing 20% of the national budget, thus enabling the country to address internal and external debts more effectively.
In conclusion, Mali’s suspension of new mining permits for foreign companies is a direct response to recent fatal mining accidents that have raised safety concerns. The government’s commitment to reforms aims to enhance state benefits from the mining sector while addressing tax evasion issues. These changes are expected to significantly boost national revenue, enabling Mali to improve its economic standing and ensure greater safety in mining operations moving forward.
Original Source: africa.businessinsider.com
