By: Peoples dispatch

Mali's government has reclaimed over 761 billion CFA francs (approximately USD 1.2 billion) from mining companies through an extensive audit and renegotiation of contracts in the extractive sector. This initiative is one of the most significant interventions in the country’s resource governance and was prompted by the realization that Mali was not receiving adequate revenue from its substantial mineral exports, particularly gold, where it ranks as Africa's third-largest producer. Under Colonel Assimi Goïta’s leadership, a comprehensive audit revealed substantial revenue losses due to unfavorable contracts and insufficient oversight, leading to sweeping legal reforms and the recovery of unpaid revenues, thereby bolstering state finances amid economic pressures and political transition.

In 2023, the mining sector contributed 644 billion CFA francs (about USD 1 billion) to the national budget, accounting for 21.5% of total government revenue, reflecting an increase from the previous year. The extractive industry, dominated by gold production, also increased its share of GDP to 6.3%. Key reforms included the introduction of a new Mining Code that enhances state participation in mining operations by granting a 10% free carried interest and the opportunity for an additional 20% acquisition. Furthermore, it mandates that mining companies sell a 5% stake to local investors, potentially increasing state and community ownership to 35%. These developments signify a strategic shift towards greater sovereignty over mineral resources and aim to enhance local economic benefits and revenue capture from mining activities.