Mali increasingly takes control of its gold mining sector

(MENAFN) Over the past two years, Mali has increasingly taken control of its gold mining sector, applying greater pressure on foreign investors, including Barrick Gold, a leading Canadian company. In mid-April, the company’s office in Bamako was shut down due to a tax dispute, marking a notable step in Mali’s more assertive approach to the industry.

The effects of this policy are already evident, as Mali’s gold-related revenues increased by 40% in 2024, reaching $1.4 billion. In the long term, these measures could enhance the country’s macroeconomic stability and potentially serve as a model for other nations in the Sahel region and across Africa.

Gold has long been a vital component of Mali’s identity, both historically and economically. The country’s association with Mansa Musa, the legendary 14th-century ruler of the Mali Empire, is central to this identity. Known as one of the wealthiest people in history, Mansa Musa’s pilgrimage to Mecca, during which he distributed vast amounts of gold, is a symbol of Mali’s long-standing connection to the precious metal. Estimates of how much gold he carried vary, but the figures range from half a ton to up to 20 tons in exaggerated accounts.

In modern times, gold remains a cornerstone of Mali’s economy, contributing 7% to its GDP and making up three-quarters of the country’s total export value. Historically, gold mining in Mali was initially artisanal, but industrial mining developed after the country’s independence, as the government recognized the potential of gold to diversify its economy, which was heavily reliant on agriculture and cotton exports.

The Soviet Union played a key role in Mali’s gold mining development, with the USSR helping launch the Kalana mine in 1984, which produced half a ton of gold annually. Additionally, the USSR assisted in establishing a national geological school and promoting the development of the gold processing industry in Mali.

Today, Mali's gold reserves are estimated to be nearly 900 metric tons, primarily located in the southern and western regions of the country. Alongside South Africa, Ghana, Tanzania, and Sudan, Mali is one of Africa’s top gold producers, with annual production of 50-60 metric tons. Major mining operations include Barrick Gold’s Loulo-Gounkoto mine and Resolute Mining’s Syama mine.

While industrial methods dominate production, artisanal mining, particularly in northern and southwestern Mali, still exists, often linked to illegal activities such as smuggling and financing terrorist groups, posing a challenge to regional stability.

In the 1990s, Mali emerged as a significant player in the global gold market as foreign investors entered the sector following market reforms. Over the next decade, foreign investments helped boost production thirty-fold, reaching 30 tons by 2000 and later increasing it to 50 tons.

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