Adopts new Mining Code and implementing decree
08 Aug 2023
On 8 August 2023, Mali adopted a new Mining Code that increasees State and private Malian interests in new projects. The new Code now allows the Government to take a 10% stake in mining projects and the option to buy an additional 20% within the first two years of commercial production. A further 5% stake could be ceded to locals, taking state and private Malian interests in new projects to 35%, from up to 20% today. Meanwhile certain tax exemptions have been abolished.
Further, on 9 July 2024, Mali issued Implementing Decree (Decree No. 2024-0396/PT-RM) for the 2023 Mining Code. The Decree directly impacts private investment by amplifying state control, limiting foreign company activities, and imposing strict local content requirements. It gives the government priority in mineral permit allocations, especially for "strategic minerals" like lithium and uranium (Articles 42-44), and restricts companies to holding a maximum of three exploration permits per district to prevent monopolization (Article 53). Additionally, any transfer or change of control in mining permits now requires government approval, reinforcing oversight (Article 117). New financial rules enhance state revenue, mandating local hiring and sourcing materials from Malian businesses to ensure mining benefits reach local communities.
Changes over the previous 2019 Mining Code include:
• Permit Allocation: The state prioritizes its interests in strategic mineral zones and limits exploration permits per entity (Articles 42-44, 53).
• Government Ownership: The Decree upholds the 10% free state share in mining ventures and enables up to 30% total ownership, with priority dividend rights (Articles 82, 125).
• Approval Requirements: Transfers of permits now need multi-ministerial approval, expanding state control over ownership changes (Article 117).
• Local Content Rules: The Decree enforces new local hiring and procurement requirements to support Mali’s economy directly (Article 82).
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Type:
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Entry and establishment (Ownership and control, Approval and admission)
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Treatment and operation (Operational conditions)
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Promotion and facilitation (Investment incentives)
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Industry:
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Primary (Mining and quarrying)
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