**Mali Establishes New Regulatory Body for Precious Minerals Trade**
Mali has taken significant steps to enhance its control over the artisanal gold trade by establishing a new regulatory body, the Malian Office for Precious Substances. This move, announced by the Council of Ministers on Tuesday, is part of the transitional government’s broader strategy to centralize and secure the sales of precious minerals, which are vital to the nation’s economy.
The creation of the office follows a cabinet decision made in March and aligns with the implementation of the 2023 Mining Code and a local content law. These initiatives aim to reinforce state sovereignty over the entire value chain of precious substances, particularly gold, which plays a crucial role in Mali’s economic landscape.
Gold mining, especially through artisanal and small-scale operations, is a significant source of revenue for Mali, providing essential foreign exchange, tax income, and employment for approximately 2 million people across 350 to 400 mining sites. Despite its importance, the sector faces numerous challenges, including issues related to smuggling and inadequate tracking of gold flows.
According to data from the World Gold Council, Mali ranks as Africa’s fourth-largest gold producer, with projected output of 82.9 tons by 2025, trailing behind Ghana, South Africa, and Burkina Faso. In 2022, Mali produced a total of 72.2 tons of gold, which included 6 tons from artisanal mining. This production contributed significantly to the state budget, generating 763 billion CFA francs (approximately $1.27 billion). Furthermore, Mali's gold exports are expected to rise to around 2.75 trillion CFA francs ($4.81 billion) in 2025, up from 1.61 trillion CFA francs the previous year, as reported by the national statistics institute, Instat.
The establishment of the Malian Office for Precious Substances is part of Bamako's efforts to increase state revenue from the mining sector. The 2023 Mining Code allows the government and local investors to hold up to 35% equity in new mining projects, a move aimed at ensuring that a larger share of the profits remains within the country.
This regulatory reform comes amid rising tensions between the Malian government and foreign mining companies. Canadian miner Barrick and Australia's Resolute Mining have recently encountered disputes with the government as it seeks to extract more revenue from the gold sector. In contrast, other companies, including Canada’s B2Gold, British firm Hummingbird Resources, and London-based Endeavour Mining, have successfully negotiated agreements with the government to align their operations with the revised mining framework.
Mali is not alone in its efforts to tighten control over mineral resources. Neighboring countries have also implemented similar measures. Burkina Faso has expanded state purchases of artisanal gold through its National Precious Substances Company. Last year, Niger nationalized its only industrial gold mine, accusing the Australian operator, McKinel Resources Limited, of serious contractual breaches. Additionally, Ghana established a state gold board to regulate small-scale gold exports, while Guinea imposed a ban on raw gold exports in June to promote local refining.
As Mali moves forward with these reforms, the government aims to bolster its position in the global gold market while addressing the challenges that have historically plagued the artisanal mining sector. The establishment of the Malian Office for Precious Substances is a critical step toward achieving greater oversight and regulation, ensuring that Mali can maximize the benefits derived from its rich mineral resources.