Mali suspends new artisanal mining permits for foreigners after deadly accidents. The government dismissed several officials linked to these incidents, prompted by a mine collapse and a flooded tunnel. New measures include halting permits and confiscating mining machinery. The country aims to better benefit from gold production amidst ongoing disputes with foreign companies, while facing a decline in industrial gold production.
The Malian Government has decided to suspend new artisanal mining permits for foreign nationals due to a string of tragic accidents. This follows a recent Council of Ministers meeting where the government also sanctioned the dismissal of several officials, both administrative and security, implicated in these incidents. This response was prompted by two catastrophic events: a mine collapse on February 15 that resulted in 43 deaths and a flooded tunnel on January 29 that led to the loss of 13 lives.
Interim President Assimi Goita has mandated the government to enhance measures to prevent further human and environmental tragedies. General Daoud Aly Mohamedinne, Minister of Security and Civil Protection, stated that these measures will include prohibiting local councils from issuing artisanal mining licenses to foreign individuals and confiscating machinery used in gold extraction at small-scale mines.
Mali, known for its rich gold resources, is home to several international mining companies such as Barrick Gold, B2Gold, Resolute Mining, and Hummingbird Resources. Following a military coup in 2020, the nation’s leaders have aimed to revise the mining sector to secure more substantial benefits from the increasing gold prices, which has led to disputes with foreign firms, including a notable issue with Barrick Gold.
Nonetheless, a recent agreement reached with Barrick may resolve a two-year dispute concerning their mining operations in Mali. The government anticipates receiving CFA Fr750bn ($1.2bn) from mining companies in the first quarter of 2025 due to reforms in the mining sector, which includes the introduction of a new mining code. Furthermore, Mali’s industrial gold production experienced a notable decline of 23% year-over-year in 2024, indicative of the considerable challenges currently facing the industry as highlighted by gold mining executives, who assert that these adjustments are essential for future investments in Mali’s gold sector.
In conclusion, Mali’s suspension of new artisanal mining permits for foreigners reflects the government’s commitment to enhancing safety in the mining sector following recent fatal accidents. The government is also taking steps to increase state benefits from gold production and resolve ongoing disputes with foreign mining companies. The anticipated financial inflow from mining reforms highlights the government’s strategic focus, despite the industry’s current challenges.
Original Source: www.mining-technology.com
