Mali’s gold production dropped 23% to 51 metric tons in 2024, down from 66.5 tons in 2023. This decline is attributed to disputes between the government and mining companies, especially involving Barrick Gold, which suspended operations amid legal conflicts. The new mining code has raised concerns about investment viability in the sector, leading to a crisis of confidence among foreign investors.
In 2024, Mali experienced a significant decline in industrial gold production, with output dropping by 23% to 51 metric tons, down from 66.5 tons in 2023, according to the country’s mines ministry. The document noted that this figure excludes Barrick Gold’s production for December due to ongoing disputes with Mali’s military-led government over a newly introduced mining law.
Mali ranks among the leading gold producers in Africa, hosting several international mining firms such as Barrick Gold, B2Gold Corp, Resolute Mining, and Hummingbird Resources. Barrick Gold suspended operations at its Loulo-Gounkoto site last month after the government seized its gold reserves, arresting four employees on allegations, including money laundering and financing terrorism.
The new mining code implemented by the Mali government, which increases taxation and mandates substantial state ownership in mining operations, has led several industry executives to express concerns that it renders investment in new mines uneconomical. The government contends that mining companies, including Barrick Gold, are not fulfilling their tax obligations adequately.
For the first time in over three years, Mali’s gold production has fallen below 60 tons. The ministry estimated that if Barrick had fulfilled its production forecast for December, output might have reached 52.7 tons. However, the ministry did not provide reasons for the drop, although an official cited the ongoing conflict with mining companies as a contributing factor.
Mali’s largest producer, Barrick Gold, reported an output of 19.4 tons in 2024, excluding December’s figures. Following Barrick, B2Gold produced 13.7 tons, while Resolute Mining produced 7.2 tons. Additionally, artisanal mines contributed an estimated 6 tons, bringing Mali’s total gold production projection for 2024 to approximately 58.7 tons.
Mali’s gold production has seen a steep decline in 2024, primarily attributed to conflicts with mining companies and the implementation of a controversial new mining code. With output falling below 60 tons for the first time in years, the sector faces significant challenges that could hinder future investments and operations. The escalating tensions between the government and mining firms underscore the complexities governing Mali’s vital gold industry.
Original Source: www.marketscreener.com
