This could see it boost state and private Malian interests in new projects to 35%, from up to 20% today, according to a draft of the new code seen by Reuters. The government announced the review of the mining code in January after it said an internal audit had shown that Mali, one of Africa’s biggest gold producers, was not receiving a fair share of profits while granting too many tax breaks. The draft, dated June 17 and verified by three sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments. It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity. International investors would have to cede a 5% stake to locals, the document said. As the junta needs to boost state revenues, the change will likely encourage more state interventions such as demands for renegotiating mining contracts. Mali’s current mining law, passed in 2019, gives the state the right to 10% with the possibility of acquiring a further 10% stake.
Mali’s Military-led Government in Talks with Gold Miners over Proposed Changes to its Mining Law
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