Make Kitco Your Homepage

Mali's new mining code shortens stability period to 10 years - ministry

Kitco News

BAMAKO, Aug 23 (Reuters) - Under a new mining code, companies operating in Mali will be protected from fiscal changes for 10 years, down from the previous "stability period" of 30 years, a senior mines ministry official told Reuters on Friday.

On Wednesday, the ministry announced the new code, which also ended an exemption from value-added tax during production, but did not specify by how much it would shorten the period under which firm's investments are protected from changes to fiscal and customs regimes. Companies operating in the country include Barrick Gold Corp, B2Gold, Hummingbird Resources and AngloGold Ashanti.

Lassana Guindo, a technical advisor at the ministry who is in charge of the new code, said the shorter stability period was in line with regional norms.

"In the sub-region, Mali was one of the few countries to have a long (stability period)," he said.


The new code is an opening salvo in what could be a protracted negotiation between the government and corporates over mining regulation in Africa's third-largest gold producer. The move is seen by some as a new instance of resource nationalism on the continent.


(Reporting by Tiemoko Diallo Writing by Alessandra Prentice; editing by David Evans)

Reuters Messaging: alessandra.prentice.reuters.com@reuters.net))

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News