Mining 2025 Comparisons

The mining industry in Mali is a vital part of the country’s economy. Mali is Africa’s third-largest gold producer, after South Africa and Ghana, and the 13th-largest in the world, with 65 tons of gold produced in 2023. The mining industry is diversifying with the development of lithium extraction, particularly via the Goulamina lithium project.

Legislative amendments, including the revised Mining Code of August 2023, allow the government to hold up to 10% equity in new projects, with the option to buy an additional 20% during the first two years of operation. A 5% stake can be ceded to locals, taking state and private Malian interests in new projects to 35%, up from 20% today, and certain tax exemptions have been abolished.

Mali is exploring strategies to align the mining industry with global carbon net-zero goals, which remain under development.

The legal system in Mali is mainly influenced by French civil law. The latter is characterised by the codification of laws. In this regard, the mining legislation is written and incorporated in a code (ie, Law No 2023-040, dated 29 August 2023, relating to the Mining Code of the Republic of Mali and implemented by Decree No 2023-0401, dated 22 July 2023, and Law No 2023-041 relating to the local mining sector, together constituting the regulatory framework of the mining industry in Mali).

The main sources of mining legislation in Mali are:

• international treaties;
• the Transition Charter;
• the Investment Code;
• the Territorial Collectivity Code;
• local laws;
• the Labour Code;
• land and property law; and
• environmental laws and regulations.

Mineral Resources: Property of the Nation

Malian mineral resources are the property of the nation. This principle is prescribed by the Mining Code, which states that natural deposits of mineral substances in the soil and subsoil of Mali automatically belong to the state. Consequently, the government holds exclusive rights to grant exploration and exploitation permits, ensuring that mineral wealth is utilised in the national interest. Landowners do not own the minerals beneath their land but may receive compensation if surface rights are affected by mining operations.

The state plays a dual role in the mining sector as both grantor-regulator and, to a limited extent, owner-operator through mandatory government participation.

• Grantor-regulator: The government regulates mining activities, issuing permits or authorisations for exploration or exploitation. This process involves ensuring compliance with environmental, social and fiscal requirements as stipulated under the Mining Code.
• Owner-operator: The government has mandatory participation rights in mining projects. For instance, under the Mining Code of 2023, the state holds a free 10% share in all mining projects, with the option to purchase an additional 20% equity stake for a total potential shareholding of 30% in any project. Consequently, government participation in mining projects is mandatory in Mali. Granting an operating licence entitles the state to free participation of a minimum of 10% in the share capital of the mining company. State participation in the share capital of the mining company is thus the counterpart to the granting of such licence. Apart from this free participation, the state can increase its participation in a mining company by purchasing a complementary participation of 20%, called “cash participation”. In the event of a capital increase, shares of the state and national investors cannot be diluted since they are priority shares.

There is no mandatory national or government joint venture, contracting, or participation in mining activities in Mali.

Mineral rights do not have any constitutional basis in Mali. The mining code states that natural deposits of mineral substances in the soil and subsoil of Mali automatically belong to the state. Thus, mineral rights have the status of property under mining permits or authorisations. Holders of mining permits or authorisations have specific rights to use the resources, but these are conditional and subject to compliance with legal requirements.

Mineral rights in Mali are granted by the ministry in charge of mines, which is the national-level authority responsible for managing the mining industry. There are no overlapping jurisdictions.

Mineral rights are granted through an administrative act, typically in the form of permits or authorisations depending on the activity.

A mining agreement entitled the “establishment agreement” is firstly concluded between the Malian state and the mining licence holder in order to set out the rights and obligations of the parties. The Mining Code of 2023 provides for two types of establishment agreements:

• an establishment agreement for the research phase; and
• an establishment agreement for the operation phase.

The duration of each agreement varies according to the phase of the mining activity and cannot exceed the duration of the phase concerned. For instance, the duration of the establishment agreement for the research phase cannot exceed that of the research permit, which is nine years including renewal periods.

Whilst the duration of the establishment agreement for the operation phase is 12 years, said agreement can be renewed for a period not exceeding ten years.

Environmental Laws and Regulations in Mali

The environment in Mali is mainly governed by Law No 91-47/AN-RM, relating to environmental and living environment protection, and Law No 2021-032, dated 24 May 2021, relating to pollution and nuisance. These laws regulate, among other things, water pollution, air pollution and noise emission. The Mining Code of 2023 also contains environmental provisions. In fact, an applicant for a mining licence should, prior to the commencement of its activities, carry out an environmental impact assessment (EIA). In addition, the mining licence holder should comply with environmental regulation during mining activity.

Main Features of the Environmental Licensing Process for an Exploration and Mining Project

Prior to the commencement of mining activity, the applicant for a mining licence should:

• carry out an EIA – the applicant contributes to the EIA’s cost;
• implement an environmental and social management plan in order to mitigate or manage environmental impacts and rehabilitation of the site affected by mining activity; and
• obtain approval for the EIA from the Ministry of Environment.

The environmental licensing process is conducted at the national level.

Strength and Efficiency of Environmental Authorities

Environmental authorities play a key role in mining projects. For instance, the Ministry of Environment should approve the environmental and social impact notice, which briefly describes the project, the potential environmental impacts and measures to reduce or eliminate negative impacts. This approval is a prior condition for the commencement of exploration.

Furthermore, the mining administration collaborates with the Ministry of Environment in monitoring the site and surrounding area in relation to mining activity.

Mali has environmentally protected areas that can be classified into natural integral reserves, national parks, faunal reserve, etc, according to Law No 95-31 dated 20 March 1995, which sets out the management conditions for wildlife and habitat. All categories of protected areas are generally managed by the Malian state. However, some categories could potentially be created and co-managed with decentralised actors.

Mining activity in environmentally protected areas can be subject to conditions or prohibited on the grounds of public interest. For instance, mining exploitation is strictly prohibited in protected areas, such as natural integral reserves and national parks.

Mining activity threatens biodiversity in protected areas in the absence of control. Indeed, waste from mining industries is discharged into the watershed and leads to habitat degradation.

Mining projects should consider the development of communities by taking economic and social actions to improve the living conditions of the local population. For instance, mining industries may build infrastructures, such as schools and health centres, for the benefit of local population. In addition, mining industries should give priority to nationals, national enterprises and locally produced materials in the execution of their activities.

Prior and informed consultation is mandatory. Indeed, exploration or exploitation by mining projects is subject to the consent of the owners of the land or rights holders. In the absence of consent, the mining permit holder should indemnify the owners of the land and can carry out the activity accordingly. Consultations are primarily carried out by the investor.

Traditional people are among the specially protected communities in Mali. Indeed, consent from the owners of the land is required before exercising the rights arising from the mining permit. According to the Mining Code of 2023, “owners of the land” refers to persons or institutions registered in the land register as the holder or beneficiary of a land title on a specified piece of land, including customary rights holders. The latter are recognised and protected by the law in the Republic of Mali.

Community development agreements are known in Mali as “community development plans”, which are documents prepared by applicants – in consultation with local and regional communities and authorities – indicating the projects to be carried out for the benefit of communities.

An applicant for a mining licence should present such document together with an EIA. The community development plan should cover priority sectors such as the construction and development of roads and bridges and the construction of health centres and schools.

The technical committee monitoring the community development plan is in charge of controlling the plan’s implementation.

The Mining Code of 2023, supplemented by its implementation decree of 2024, increases state control, including via measures aimed at improving local participation and environmental protections, leading to a focus on enhancing environmental, social, and governance (ESG) standards within the mining sector.

Illegal mining is a significant issue in Mali and poses challenges to the formal mining industry.

The main issues in case of illegal mining are:

• unregulated competition;
• environmental damage;
• high unemployment; and
• economic damage and safety risks.

Illegal mining can take many forms, including mining activity in the absence of a mining licence and obtaining a licence by fraudulent means. The latter is punishable by a fine and imprisonment, and even cancellation of the licence. In the event of mining activity in the absence of a mining licence, materials used in the activity are seized and brought to court.

In Mali, there are examples of both good and bad environmental and community relations surrounding mining projects.

Good examples include:

• the Diba Gold Project, where Altus Strategies implemented a long-term community development programme focused on health and education;
• some mining operations that have funded vocational training centres equipping local residents with skills relevant to mining and related industries, creating better employment opportunities; and
• partnerships with international organisations and NGOs that have supported infrastructure projects focusing on road construction, corridors and energy access.

Bad examples include:

• artisanal gold mining, which has been practiced for centuries and is a way of life for communities and an integral part of the socio-economic system of the region in question, but nonetheless leads to severe environmental degradation due to a lack environmental safeguards; and
• certain mining projects that lead to tension between the community and operators due to inadequate environmental safeguards, in turn leading to environmental degradation such as land and water contamination.

Climate initiatives affect Mali’s mining sector through stricter requirements. Mali integrates strategic environmental assessments (evaluation environnementale stratégique (EES)) into its mining policies and land use planning. This approach can enhance the mining sector’s contribution to sustainable development. In this regard, mining companies are adopting cleaner technologies and enhanced environmental standards.

No specific climate change legislation related to mining has been passed in Mali but discussions and initiatives are ongoing, particularly to align the sector with global sustainability goals. The Mining Code of 2023 includes provisions that emphasise environmental protection and the need for mining projects to integrate climate-related strategies.

Mali has adopted a new vision that integrates mining activities into a sustainable development framework. This includes social, economic and environmental dimensions, with a focus on mining communities and regions. Mining is now seen as an integral part of the national economy. The Decennial Programming Law (2018–28) will define a clear policy for the development of the mining and petroleum sectors, outlining stakeholders’ responsibilities.

In Mali, there is currently no specific legislation targeting energy-transition minerals like lithium, cobalt, rare earths or copper. However, the government is exploring policies to promote their exploration and exploitation due to rising global demand. Initiatives include developing untapped mineral resources and attracting foreign investments in these energy-transition minerals. These efforts are part of a strategy to diversify the mining economy beyond gold.

Research permit holders must pay an annual surface fee. They are exempt from all value added tax.

Companies engaging in exploration and mining are subject to the following taxes, inter alia:

• housing tax;
• social security contributions and charges payable by employees;
• tax on insurance contracts;
• registration fees;
• contribution to the import verification programme; and
• stamp duty in case of intention to export mining products.

Furthermore, a mining company with an operating licence that produces more than 30% of the quantity specified in the feasibility study production schedule must pay an overproduction fee. Mineral products are subject to a special tax on certain products (impôt spécial sur certains produits) and ad valorem tax. The taxable base of special tax on certain products is tax-free turnover whereas that of the ad valorem tax is the valued production.

Operating licence holders benefit from a reduction in the rate of tax on industrial and commercial profits tax, or corporate tax, to 25% over a period of three years, starting from the date of first commercial production.

The transfer or sale of a mining project is subject to capital gains in Mali.

Mali provides attractive fiscal incentives, including exemptions during exploration phases:

• the Mining Code ensures fiscal and customs stability for investors; and
• the developing mining infrastructure (eg, construction of a road corridor between Bamako and Dakar in the south (completed), San-Pédro and Bamako (in progress) and Bamako and Zantiebougou (in progress), and partnerships with institutions like the World Bank (eg, Programme de Gouvernance du Secteur Minier (PGSM)) enhance its appeal.

The government also emphasises transparency and legal security to reassure investors, including via Initiative pour la Transparence dans les Industries Extractives (ITIE).

There are no restrictions on foreign investment in the exploration and mining sectors in Mali.

However, Mali has specific rules for foreign investment in the mining sector. Mining activity relating to substances subject to the mining regime is authorised by virtue of a mining title.

The mining titles provided for in the Mining Code include:

• exploration authorisation;
• exploration permits;
• artisanal mining permits;
• small-scale mining permits; and
• large-scale mining permits.

While the sector is open to foreign investment, there are some legal requirements, such as compliance with environmental requirements and contributions to local development. The initial legal requirements include compliance with environmental standards, such as conducting an EIA before any exploration or mining project. Mining companies must also develop a site rehabilitation plan after mining activities. Also, mining companies must partner with local entities or support the training of the Malian workforce. Regarding local development, investors are required to fund community projects, such as building infrastructure or supporting education and healthcare. Finally, they are often required to prioritise the hiring of local workers and provide technical training.

Mali participates in multilateral treaties that specifically favour and protect investments in exploration and mining, including:

• the Convention Establishing the Multilateral Investment Guarantee Agency, concluded in Seoul on 11 October 1985;
• The OHADA Treaty (Organisation pour l’Harmonisation en Afrique du Droit des Affaires); and
• The Economic Community of West African States (ECOWAS) Mining Directive.

Furthermore, Mali has signed bilateral investment treaties with many countries, including Canada, China and Germany, some of which have already entered into force in Mali.

One of the main sources of finance for exploration, development and mining in Mali is foreign direct investment, primarily from international mining companies.

For instance, the mining giant Barrick Gold, the world’s second-largest gold producer, has made significant investments in the Loulo-Gounkoto mine. The World Bank, which funds projects such as the PGSM to improve resource management, and Banque Africaine de Développement (BAD), which supports initiatives to develop infrastructure critical to the sector, play a key role by funding specific projects.

In addition, local mining companies and Malian private investors, such as Société d’Exploitation des Mines d’Or de Sadiola (SEMOS), provide limited but growing support. Lastly, public-private partnerships (PPPs) are used for infrastructure projects supporting the mining industry.

The mining companies operating in Mali, such as Barrick Gold, raise funds by issuing shares or bonds on international exchanges. Barrick Gold lists its shares on the New York Stock Exchange under the symbol GOLD, and on the Toronto Stock Exchange under the symbol ABX. These international securities markets help to mobilise significant capital to finance exploration and development in Mali. In addition, though limited, local mining companies can access regional financial markets, such as the West African Regional Stock Exchange (Bourse Régionale des Valeurs Mobilières (BRVM)) based in Abidjan. These markets help channel local investments into the mining sector.

The Malian Mining Code does not prohibit the following (pledges, mortgages, etc) from being used as security in connection with mining exploration, development and financing:

• mining permits and authorisations; and
• tangible assets such as mining equipment and infrastructure.

In this regard, securities should be registered with the relevant authorities, and the transfer or assignment of securities should be subject to conditions.

The mining sector will undergo a significant transformation over the next few years, driven by its focus on energy transition minerals (eg, cobalt, copper, lithium, graphite).

The government has taken a proactive approach by securing a 35% stake in Goulamina (ie, in the Goulamina lithium project), the country’s second largest lithium mine, underscoring its intention to capitalise on the rising demand for clean energy materials. Legislative amendments, including the revised Mining Code of 2023, allows the government to hold up to 10% equity in new projects, with the option to buy an additional 20% during the first two years of operation. A 5% stake can be ceded to locals, taking state and private Malian interests in new projects to 35%, up from 20% today, and certain tax exemptions have been abolished. Additionally, Mali is exploring strategies to align its mining industry with global carbon net-zero goals, which remain under development.

These changes reflect a balance between exploiting mineral wealth, particularly lithium, and resolving the problems of environmental and economic sustainability in Mali.