Mining Comparative Guide -

1 Legal and regulatory framework

1.1 Which legislative and regulatory provisions govern mining in your jurisdiction?

The main statutes governing mining activities in Mali are Ordinance 2019-022/P-RM dated 27 September 2019 (the Mining Code) and its implementing decree. However, to date, the implementing decree of the Mining Code has not been adopted.

1.2 When was the mining legislation last reviewed?

The mining legislation was last reviewed in September 2019.

1.3 What other legislative and regulatory provisions have relevance for mining operations in your jurisdiction?

Without being exhaustive, the following legislative and regulatory provisions also have relevance for mining operations in Mali:

the implementing decree of the Mining Code. However, to date, this has not yet been adopted;
Law 01-020 dated 30 May 2001 governing pollution and environmental damages (the Environmental Code) and its implementing decrees, such as Decree 03-594 governing environmental impact assessments;
Ordinance 00-027 dated 22 March 2000, amended by Law 002-008 dated 12 February 2002, Law 2012-001 dated 10 February 2012 and Law 2016-025 dated 14 June 2016 and its implementing decrees;
the Labour Code; and
the General Tax Code.

1.4 Are there any regional treaties or laws that need to be taken into account?

The following regional regulations must be taken into account by mining companies:

the uniform acts adopted by the Organisation for the Harmonisation of Business Law in Africa, of which Mali is a member state; and
the West African Economic and Monetary Union Foreign Exchange Regulation (ie, Regulation 09/2010/CM/UEMOA).

1.5 Which bodies are responsible for enforcing the applicable mining laws and regulations? What powers do they have?

The following bodies are responsible for enforcing the applicable mining laws and regulations:

the Ministry of Mines; and
the Direction Nationale de la Géologie et des Mines (DNGM), the regulatory authority of the mining sector.

1.6 What is the regulators' general approach in regulating the mining sector?

In regulating the mining sector – and particularly since the adoption of the Mining Code – the regulator's general approach is to take into account both the mining operator's interests and the impact of the mining activities on the national economy.

In this regard, the regulator has paid special attention to:

the repartition of profits between the government and mining companies;
the protection of the environment; and
the implementation of a legal framework to regulate artisanal mining activities.

2 Mining industry

2.1 How mature is the mining industry in your jurisdiction?

The mining industry in Mali is mature. Mining activities have a significant impact on the Malian economy. Since 1990, gold mining has been a major economic activity in Mali and is the second-largest source of export revenue.

2.2 What are the key minerals which are mined in your jurisdiction and where is mining activity typically based?

Gold production is the backbone of Mali's mining sector and accounts for 95% of its mining output. In addition to gold, Mali has several key minerals such as bauxite, iron, base metals and phosphate.

The main regions/areas where mining activity is important are:

the west, particularly the Kayes region (ie, Kenieba, Guidimaka, Nioro Bafoulabé Kita);
the south, particularly the Koulikoro and Sikasso regions; and
the north.

2.3 Are any minerals deemed strategic and, if so, what impact does this have?

Gold is considered strategic. Mali is the third-largest gold producer in Africa, with 13 active mines. Gold represents 95% of mining production in Mali.

2.4 Who are the key players in the mining industry in your jurisdiction?

The key players in the Malian mining industry are as follows:

the Ministry of Mines;
the Direction Nationale de la Géologie et des Mines; and
the Malian Mining Chamber, which is comprised of mining companies that carry out the exploration, research and exploitation of minerals, mining subcontractors and any individual or company that is habitually engaged in mining activities. The role of the Mining Chamber is to organise and represent individuals and companies in the various mining professional branches.

2.5 In addition to exploration rights and mining rights, what other mining rights and titles exist (eg, artisanal or small-scale mining rights)?

The other mining rights and titles that exist in Mali are as follows:

the artisanal exploitation permit;
the semi-mechanised exploitation permit;
the small-scale exploitation permit; and
the large-scale exploitation permit.

3 Exploration rights

3.1 What licences are required to undertake prospecting and exploration activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?

Prospecting and exploration activities are subject to:

an exploration authorisation; and/or
a research permit.

Any type of mineral may be covered by a prospecting authorisation or research permit.

3.2 What requirements must be satisfied to obtain a licence?

Exploration authorisation: The following requirements must be satisfied:

proof of the necessary technical and financial capacity to carry out the exploration activities;
presentation of a minimum work programme; and
confirmation that the relevant substances are not covered by an existing authorisation in the same requested area.

Research permits: These are assigned on a ‘first come, first served' basis. The following requirements must be satisfied:

proof of the necessary technical and financial capacity to carry out the exploration activities and respond to environmental, health, safety and hygiene obligations; and
presentation of a minimum work commitment setting out the programme and the budget allocated to the proposed research work.

3.3 What is the procedure for obtaining a licence? How long does this typically take?

The following procedure and required documentation are still subject to the provisions of the implementing decree of the Mining Code, which as yet has not been adopted.

Exploration authorisation and research permit: An application letter is submitted to the Ministry of Mines or the Direction Nationale de la Géologie et des Mines (DNGM). The letter must contain details of:

the identity of the applicant;
the minerals for which the authorisation or permit is sought; and
the surface/size of the mining area that is requested.

It must be accompanied by the following documents, among others:

proof that the applicant has the necessary technical and financial capacity to carry out the mining activities;
a detailed work programme with the allocated budget;
a certificate of solvency;
a topographical map (scale of at least 1/200,000) showing the area requested and outlining its limits; and
a power of attorney for the individual who signs the application letter.

The procedure generally takes 30 days from submission of the required documentation, although this may be subject to administrative delay.

An exploration authorisation is issued by the DNGM, whereas a research permit is granted by order of the minister of mines.

Exploitation permit: An application letter is submitted to the Ministry of Mines and the DNGM. The letter must contain information on the identity and address of the applicant.

It must be accompanied by the following documents, among others:

proof that the applicant has the necessary technical and financial capacity to carry out the mining activities;
a feasibility study of the targeted minerals;
a copy of the environmental permit, based on an environmental and social impact assessment of the project;
a copy of the environmental and social management plan;
a copy of the closure and rehabilitation plan;
a copy of the community development plan;
a certificate of solvency;
a topographical map (scale of at least 1/200,000) showing the area requested and outlining its limits; and
a power of attorney of the individual who signed the application letter.

The procedure generally takes three months from submission of the required documentation, although this may be subject to administrative delay.

A large-scale exploitation permit is granted by decree of the prime minister, and other exploitation permits by order of the minister of mines upon a favourable opinion of the DNGM.

3.4 Who can own exploration rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?

Individuals and legal entities can own mining rights in Mali. However, the following requirements must be satisfied:

A foreign entity that wishes to obtain a mining permit must establish a domicile in Mali.
Artisanal exploitation permits may be owned only by individuals of Malian nationality.
Semi-mechanised exploitation permits may be owned only by individuals of Malian nationality or legal entities that are duly incorporated under Malian law (ie, companies that are majority owned by Malian nationals).
Small-scale exploitation permits may be owned only by legal entities that are duly incorporated under Malian law.
Only the holders of research permits can apply for large-scale exploitation permits. Once granted, a company that is registered under the laws of Mali must be incorporated to carry out the exploitation activities.

3.5 What fees and other charges are incurred in obtaining a licence?

Following the enactment of the new Mining Code, the relevant authorities in charge of the mining sector plan to establish new fees and charges that may be incurred in obtaining a licence and to specify them in the implementing decree. However, this new decree has not yet been adopted and all licence applications have been suspended due to the COVID-19 crisis.

3.6 What is the duration of a licence? What is the process for renewal?

The duration of an exploration authorisation is three months, which is not renewable.

The duration of a research permit is three years, which is renewable twice for further three-year periods.

The renewal process involves the submission of an application to the minister of mines and the DNGM four months before the expiry of the authorisation or permit, and the payment of renewal fees.

The above requirements for renewal are still subject to the provisions of the implementing decree of the Mining Code, which has not yet been adopted. The above information is based on a previous process (ie, which applied before the adoption of the Mining Code).

3.7 What are the operator's rights and obligations under the licence?

Generally, the rights and obligations of the operator will be set out in an establishment agreement between the government and the operator, which is annexed to the licence. Among other things, the agreement will specify:

the conditions and terms of the relationship between the licence holder and the government;
the rights and obligations of each party; and
a guarantee of stability regarding taxation, economic conditions and foreign exchange regulations.

The Mining Code further provides as follows.

Exploration authorisation: An exploration authorisation grants the operator an exclusive exploration right over all minerals within the mining area attributed to the operator.

An operator's obligations under an exploration authorisation include the provision to the DNGM of a report on the works carried out and the results within one month of the expiry of the authorisation.

Research permit: The rights of an operator under a research permit are as follows:

an exclusive prospection, exploration and research right over groups of minerals within the mining area attributed to the operator and the right to dispose of minerals extracted for analysis;
the right to extend the attributed permit in case of discovery of minerals which are not in the same groups as those attributed to the operator under the permit; and
the right to transfer the permit, subject to notification of the Ministry of Mines.

The obligations of an operator under a research permit are as follows:

to provide the DGMG with an annual activity report summarising the research or exploitation activities undertaken that year. This report must include information on the impact of the activities on the environment and on any restoration or rehabilitation and securing of the mining site;
to inform the competent authority in charge of national heritage in case its activities affect any related sites or assets; and
to pay the corresponding surface royalties.

3.8 Are there any requirements re relinquishment of an exploration licence or part of the area covered by an exploration licence?

The Mining Code does not specifically address the requirements or obligations of a permit holder to relinquish a research permit or part thereof. However, these may be specified in the establishment agreement attached to the permit.

The Mining Code provides only that a research permit holder is entitled to relinquish or waive all or part of its permit subject to:

notification of the minister of mines; and
fulfilment of the obligation to rehabilitate and secure the mining site.

Such relinquishment is effective only after the issuance of an order from the minister of mines evidencing the relinquishment.

3.9 Can licences be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?

Exploration authorisation: An exploration authorisation cannot be transferred.

Research permit: A research permit can be transferred. The assignment agreement must be notified to the minister of mines within 30 days of its execution. Such transfer is effective only after the issuance of an order of the minister of mines granting the exploration permit to the assignor (ie, the new holder).

Further conditions on the transfer will be specified in the implementing decree of the Mining Code.

3.10 Does an exploration licence give any priority when applying for a mining right?

It is not a priority per se, but rather an exclusive right. A large-scale mining permit will be granted only to the holder of a research permit.

4 Mining rights

4.1 How is ownership of mining rights determined in your jurisdiction?

The ownership of mining rights is determined by the type of permit held. There are numerous types of operating and exploitation licences in Mali, as follows:

the artisanal exploitation permit;
the semi-mechanised exploitation permit;
the small-scale exploitation permit; and
the large-scale exploitation permit.

4.2 What are the key requirements in order to apply for a mining right?

The following key requirements must be met when applying for an exploitation permit:

confirmation that the operator has the financial and technical capacity to carry out the exploitation activities and meet its environmental, health, safety and hygiene obligations;
confirmation that the operator is not involved in fraud, money laundering, corruption or any infringement of environmental, social or safety rules; and
confirmation of the operator's solvency.

4.3 What fees and other charges are incurred in obtaining a mining right?

Following the enactment of the new Mining Code, the relevant authorities in charge of the mining sector plan to establish new fees and charges that may be incurred in obtaining a licence and to specify them in the implementing decree. However, to date this new decree has not yet been adopted and all licence applications have been suspended due to the COVID-19 crisis.

4.4 What is the duration of a mining right? What is the process for renewal?

An artisanal mining permit is issued for a period of three years, which is renewable for further three-year periods.
A semi-mechanised exploitation permit is issued for a maximum period of three years, which is renewable for further periods of the same duration until depletion of the mining deposit.
A small-scale exploitation permit is issued for a period of four years, which is renewable for further periods of the same duration until depletion of the mining deposit.
A large-scale exploitation permit is issued for a maximum period of 12 years from the signature date of the issuing decree. It is renewable for a consecutive period of 10 years for each renewal until depletion of the mineral deposit.

Broadly, the renewal process involves the submission of an application letter to the minister of mines or the Direction Nationale de la Géologie et des Mines (DNGM) one year before the expiry of the permit, along with payment of the renewal fees.

4.5 Who can own mining rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?

Individuals and legal entities can own mining rights in Mali. However, the following requirements must be considered:

A foreign entity that wishes to obtain a mining permit must establish a domicile in Mali.
Artisanal exploitation permits may be owned only by individuals of Malian nationality.
Semi-mechanised exploitation permits may be owned only by individuals of Malian nationality or legal entities that are duly incorporated under Malian law (ie, companies that are majority owned by Malian nationals).
Small-scale exploitation permits may be owned only by legal entities that are duly incorporated under Malian law.
Only the holders of research permits can apply for large-scale exploitation permits. Once granted, a company that is registered under the laws of Mali must be incorporated to carry out the exploitation activities.

4.6 Do any indigenous ownership requirements apply in your jurisdiction?

Please see question 4.5.

4.7 What role does the state play in the mining industry in your jurisdiction?

The state regulates the mining sector in Mali. Its main duty is to ensure that:

the mining sector contributes to Mali's socio-economic development; and
mining activities are conducted in accordance with international standards.

The state also holds a participating interest of at least 10% in all in large-scale exploitation activities.

4.8 Are there requirements for the government to enter into a mining development (or similar) agreement in addition to the licences/permits? When is this required or available?

An establishment agreement must be annexed to the exploitation permit setting out the terms of the relationship between the state and the permit holder, as well as the parties' respective rights and obligations.

For large-scale mining permits, the government will also hold a participating interest of at least 10% in the capital of the newly incorporated company.

4.9 Can mining rights be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?

An artisanal mining permit may be transferred. The terms and condition of the assignment are determined by the Autorité de Collectivité Territorial.
The rights and obligations under a semi-mechanised exploitation permit may be transferred. The related assignment agreement must be notified to the minister of mines within 30 days of its execution. The transfer is effective only after the minister of mines has issued an order granting the exploration permit to the new holder.
A small-scale mining permit may be transferred. The related assignment agreement must be notified to the minister of mines within 30 days of its execution. The transfer is effective only after the minister of mines has issued an order granting the exploration permit to the new holder. Only an entity which has the financial and technical capacity to carry out the exploitation activities and to fulfil the relevant environmental obligations can acquire a small-scale mining permit.
A large-scale mining permit can be transferred, subject to the approval of the prime minister. The request for approval must be made by the assignor within 30 days of execution of the assignment agreement. The transfer is effective only once the prime minister has issued a decree to the new holder. Only an entity which has the financial and technical capacity to carry out exploitation activities and to fulfil the relevant environmental obligations can acquire a large-scale mining project.

Further conditions on the process for transfers, details of restrictions and direct or indirect taxes regarding transfers shall be set out in the implementing decree of the Mining Code, which has not yet been adopted.

4.10 Can security be taken over mining rights?

Yes. Under the Mining Code, rights under a small-scale exploitation permit or a large-scale exploitation permit are considered immovable rights. They may be subject to mortgage as long as the loan amount is used to fund the exploitation activities.

4.11 What provisions apply with regard to closure or abandonment of a mining right?

In case of closure or abandonment of a mining right, the permit holder must first:

notify the DNGM of its intention to close or abandon the right; and
fulfil its obligations to rehabilitate and protect the mining site.

The closure of a site must be evidenced by order of the minister of mines in the case of a small-scale exploitation permit or by decree of the prime minister in the case of a large-scale exploitation permit.

5 Surface rights

5.1 Does the law of your jurisdiction distinguish between mining rights and surface rights? If so, how does an owner of mining rights acquire surface rights?

Mining rights constitute property that is distinct from the ownership of the land.

The right to undertake research and exploitation activities is subject to the consent of the land owner (private or public owner) or expropriation.

5.2 Where surface rights are acquired, what are the operator's rights and obligations as regards the landowner? And what are the landowner's rights and obligations as regards the operator?

The holder of a mining permit must pay appropriate compensation to the landowner for any deprivation of enjoyment of the land or if the mining activities may cause damage to the landowner.

Further details on the rights and obligations of the operator and the landowner will be set out in the implementing decree of the Mining Code, which has not yet been adopted.

5.3 Please give an overview of the process for any mandatory acquisition of surface rights (eg, process and time to enforce).

The mandatory acquisition of surface rights is subject to fair and prior compensation of the landowner.

Further details will be set out in the implementing decree of the Mining Code, which has not yet been adopted.

5.4 Are any native title issues applicable, either at the exploration licence stage or when a mining right is issued?

The Mining Code does not provide for any native title issues applicable either at the exploration licence stage or when a mining right is issued.

5.5 Are any other rights needed to use the land (eg, zoning permissions or planning requirements)?

Apart from the obligation to obtain the landowner's consent (in public or private areas) and to compensate the landowner if the use of the land deprives the landowner of the right to enjoy it, the other rights needed to use the land may be set out in the agreement to be concluded between the landowner and the permit holder.

The implementing decree of the Mining Code may also specify additional rights and obligations of the permit holder, although this has not yet been adopted.

6 Environmental issues

6.1 What environmental authorisations are required to undertake prospecting, exploration and mining activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?

Research activities: The holder of a research permit must submit to the Ministry of Environment an environmental and social impact note regarding the envisaged research activities before commencing such activities. This notice must be amended if the activities ultimately carried out are more intensive than anticipated in the notice or if new activities are to be carried out that were not previously identified and may have a serious impact. This amended notice is subject to the prior approval of the Ministry of Environment before activities can commence.

The holder of a research permit must also deposit with an international bank a guarantee to ensure that it can cover the costs of rehabilitation of the mining site on completion of the research activities.

Exploitation activities: In order to undertake exploitation activities under an artisanal exploitation permit, a small-scale exploitation permit or a large-scale exploitation permit, an environmental permit is required.

The holder must also submit a closure and rehabilitation plan to the Direction Nationale de la Géologie et des Mines (DNGM) and the Ministry of Environment. This plan must be revised every five years and must be published on the websites of both the permit holder and the DNGM.

The holder of a small-scale exploitation permit must:

carry out exploitation activities in accordance with an environmental and social impact notice duly approved by the authority in charge of the environment;
rehabilitate the mining site in accordance with a closure and rehabilitation plan duly approved by the authority in charge of the environment;
deposit with an international bank a guarantee to ensure that it can cover the costs of rehabilitation of the mining site on completion of the exploitation activities; and
update the environmental and social impact notice, the closure and rehabilitation plan and the plan for the financing of the rehabilitation work as necessary and required.

The holder of a large-scale exploitation permit must also:

implement an environmental and social management plan for the closure and rehabilitation of the mining site. To this end, the permit holder must open an escrow account and deposit an amount equivalent to what is specified in the plan; and
update its environmental and social impact assessment, closure and rehabilitation plan as necessary and required.

6.2 What environmental obligations must the operator observe while the mine is operational?

The holder of a mining permits must:

provide the DNGM with an annual activity report summarising the research or exploitation activities undertaken that year. This report should include information on the impact of these activities on the environment and on any restoration, rehabilitation or securing of the mining site;
inform the competent authority in charge of national heritage in case its activities may affect any sites or assets of national heritage; and
pay the corresponding surface royalties.

6.3 What environmental obligations must the operator observe in relation to closure of the mine?

Mining permit holders must restore the mining site in accordance with the closure and rehabilitation plan. The closure of a mining site is subject to the prior notification of the DNGM. Prior authorisation from the Ministry of Mines may also be required.

6.4 What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?

Breach of these requirements may lead to cancellation of the mining permit.

The Mining Code is silent on the sanctions that may be imposed on directors, managers and employees in case of breach of environmental requirements.

6.5 Which bodies are responsible for enforcement of environmental obligations?

The following bodies are primarily responsible for the enforcement of environmental obligations:

the Ministry of Mines; and
the Ministry of Environment.

6.6 What is the regulators' general approach in regulating the mining sector from an environmental perspective?

From an environmental perspective, the Malian mining regulator is committed to:

ensuring the effective protection of the environment by operators and compliance with international protection standards such as the Extractive Industries Transparency Initiative; and
sanctioning any breaches of operators' environmental obligations.

7 Health and safety

7.1 What key health and safety requirements apply to operators in your jurisdiction?

The following health and safety requirements apply to operators in Mali:

to take appropriate measures to ensure the health and safety of individuals and the safety of goods; and
to establish rules pertaining to hygiene, health and security.

The holders of mining permits and their subcontractors must also:

provide accommodation for employees on or outside the site in accordance with hygienic and sanitary regulations;
comply with the health legislation and regulations;
comply with the general conditions of work relating to the prevention and compensation of work accidents and diseases;
comply with the general conditions of work relating to professional associations and trade unions; and
contribute to:
- the implementation, provision or improvement of health and educational facilities at a reasonable distance from the mining site, corresponding to the normal needs of employees and their families; and
- the organisation of local recreational facilities for employees and their families.

7.2 What reporting requirements apply with regard to mining accidents in your jurisdiction?

The Labour Code provides that employers must notify the Labour Inspectorate within 48 hours of the occurrence of a work accident or outbreak of disease.

Under the Mining Code, any serious mining accident must be reported as quickly as possible to the competent authority in charge of mines at the place where the accident occurs.

7.3 What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?

Breach of the hygiene and health requirements can lead to the following sanctions:

suspension or withdrawal of the exploitation authorisation or permit; and
imprisonment for between one month and three years, and/or the imposition of fines of between XAF 1 million (approximately $1,600) and XAF 5 million (approximately $8,200) on the permit holder.

Failure to comply with a reporting obligation in case of an accident can also lead to imprisonment for between six months and two years, and/or the imposition of fines of between XAF 1 million (approximately $1,600) and XAF 5 million (approximately $8,200), on the permit holder.

The Mining Code is silent on the sanctions that may be imposed on directors, managers and employees in case of breach of the health and safety requirements.

7.4 What best practices in relation to health and safety should operators consider adopting in your jurisdiction?

Operators must consider and comply with the health and safety requirements mentioned in question 7.1.

7.5 Which bodies are responsible for enforcement of health and safety obligations?

The following bodies are responsible for the enforcement of health and safety obligations:

the Ministry of Mines; and
labour inspectors.

7.6 What is the regulators' general approach in regulating the mining sector from a health and safety perspective?

From a health and safety perspective, the regulator is committed to ensuring that mining companies respect the applicable regulations and measures in accordance with accepted national or international standards. For instance, copies of such regulations must be posted in the workplace and in places that are visible to employees.

8 Processing, refining and export

8.1 What requirements and restrictions apply with regard to the processing or refining (beneficiation) or minerals?

Only the holder of an exploitation permit can carry out the processing or refining of minerals.

8.2 What requirements and restrictions apply to the export of minerals?

During the validity period of the mining permit, permit holders are free to export extracted, produced or processed minerals and can freely trade such minerals.

Further details on the maximum quantities of mineral that can be exported will be set out in the implementing decree of the Mining Code, which has not yet been adopted.

The export of radioactive minerals is subject to the prior authorisation of the minister of mines.

9 Taxes and royalties

9.1 What taxes, royalties and similar charges are levied on mining operators in your jurisdiction? How are these calculated?

The following analysis is limited to taxes applicable to the holders of research permits and large-scale and small-scale exploitation permits.

Without being exhaustive, mining operators are subject to the following taxes, royalties and similar charges:

the fees payable on applying for a permit or for renewal thereof;
a tax on the transfer of a permit;
annual surface fees;
value added tax (VAT) of 18% (not applicable to the holders of research permits);
corporate income tax (not applicable to the holders of research permits);
overproduction royalties (not applicable to the holders of research permits);
withholding tax for the payment of services rendered by non-residents (not applicable to the holders of research permits);
an ad valorem tax and special tax on some products (ie, the Impôt Spécial sur certains Produits);
employer's and employee's social contributions;
housing tax;
salary income tax;
a tax on vehicles, except for heavy vehicles used for exploration and research activities;
registration fees and stamp duties;
statistical royalties; and
a tax on insurance policies, except for heavy vehicles used exclusively for exploration and research activities.

Further details on the basis for calculating these taxes will be set out in the implementing decree of the Mining Code, which has not yet been adopted.

9.2 Are any tax incentives available for mining operators?

Yes. In addition to those taxes listed in question 9.1 the holders of research permits are exempt from all taxes (including VAT), duties, contributions and any other direct or indirect taxes.

For three years from the date of first commercial production, the holders of exploitation permits can benefit from a reduction in the industrial and commercial income tax or corporate tax rate to 25%.

9.3 What other strategies might mining operators consider to mitigate their tax liabilities?

The new Mining Code does not provide any possibilities for mining operators to mitigate their tax liabilities.

9.4 Have there been any significant changes to the taxation rates applicable to mining companies in the last three years?

Changes have been introduced to the tax rates applicable to mining companies in the new Mining Code. For instance, in the case of a significant increase in the sale price of mining products beyond the feasibility study prices, the owners of mining permits must pay a progressive royalty.

10 Disputes

10.1 In which forums are mining disputes typically heard in your jurisdiction?

Mining disputes are generally subject to international arbitration.

Following the adoption of a new Mining Code in Mali, in case of dispute between a mining operator and the government, the parties can jointly appoint one or several independent experts acting in an advisory capacity to try to resolve the dispute.

Any other dispute between the parties, other than of a purely technical nature, is settled as a last resort by:

the Malian courts;
an arbitral tribunal under Malian law;
an international arbitral tribunal;
a regional arbitral tribunal constituted under Malian law; or
an international arbitral tribunal under the terms of the mining convention.

10.2 What issues do such disputes typically involve? How are they typically resolved?

Most arbitral awards are not publicly available, so it is difficult to ascertain the types of issues that mining disputes brought before an arbitral tribunal generally involve.

10.3 Have there been any recent cases of note?

We are not aware of any recent cases of note since the adoption of the Mining Code.

11 Trends and predictions

11.1 What changes have there been to the mining landscape in your jurisdiction in the last five years?

The new Mining Code was adopted in 2019. As this statute is still relatively new, we are waiting to see its impact on the Malian economy and investment in the mining sector.

11.2 How would you describe the current mining landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Mali has moved from an attractive mining regime to a development mining regime which should help the country both to maximise the positive impact of the mining sector on socio-economic development and to better preserve and protect the environment.

The next step will be the adoption of an appropriate implementing decree of the current Mining Code.

12 Tips and traps

12.1 What are your top tips for mining operators in your jurisdiction and what potential sticking points would you highlight?

It is advisable to comply at all times with all regulations that are applicable to the mining sector in order to avoid litigation, which is always costly and time consuming.

According to the Direction Nationale de la Géologie et des Mines, the Malian subsoil is rich with a wide variety of gemstones and fossil minerals that may be exploited by foreign investors.

In addition to the exploitation of gold, investors may focus on the development of other minerals which are present in significant quantities but which are underexploited, such as kaolin, fireclay, gypsum, rock salt, manganese, lithium, iron, oil shale, lignite, nickel, tin, zinc, lead and uranium.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mali: Mining Comparative Guide