Mali Recovers 1.2 Billion Dollars in Mining Arrears Under New Code

Mali has recovered 761 billion CFA francs, equivalent to about 1.2 billion US dollars, in unpaid dues from mining companies after a sweeping audit of the country’s extractive sector. The finance minister announced the recovery as one of the largest clawbacks the country has ever achieved.

The process began in early 2023, when the government launched an audit following widespread concerns that mining firms had significantly underpaid royalties and other obligations. The audit, carried out by independent firms, uncovered financial irregularities and shortfalls for the state, estimated at between 300 and 600 billion CFA francs. As a result, a recovery commission was established, and a new mining law was adopted later that year to strenmgthen oversight and revenue collection.

The revised law raised royalty rates, increased the share of state participation, and removed stability clauses that previously protected companies against sudden regulatory changes.

Among firms affected were central international operators, including Barrick Gold, as well as other miners such as B2Gold, Allied Gold, Resolute Mining and Endeavour Mining. These companies reportedly settled their arrears and agreed to operate under the new legal framework.

Under the new code and with audited firms alone, the government expects annual revenues from royalties, taxes and other contributions to rise by roughly 586 billion CFA francs. This increase would bring the total contribution from audited mining firms to about 1 022 billion CFA fra1,022er year. Audit and legal costs incurred during the recovery process were modest in comparison, amounting to just 2.87 billion CFA francs.

The recovery represents a strong victory for the Malian government’s push for resource sovereignty and fiscal accountability. For a country heavily reliant on mining for export earnings and state revenue, the move could provide a significant boost to public finances.

At the same time, the reforms carry risks. Industry observers note that tightening oversight and renegotiating contracts may dampen investor confidence, and the government acknowledged that gold production has already fallen. Industrial gold output dropped by 32 per cent year-on-year by the end of August.

For now, Mali stan is at a crossroads. The success of this clampdown and the new mining code could reshape how the country manages its mineral wealth. If sustained, the reforms may strengthen Mali’s ability to capture greater value from its natural resources. But balancing fiscal recovery with stable investment and production will remain a major challenge.