MALI Law and Practice Contributed by: Felana Ranaivoson and Tiavina Rakotonaivo, John W Ffooks & Co
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry The mining industry in Mali is a vital part of the coun - try’s economy. Mali is Africa’s third-largest gold pro - ducer, after South Africa and Ghana, and the 13th- largest in the world, with 65 tonnes 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, tak - ing state and private Malian interests in new projects to 35%, and certain tax exemptions have been abol - ished. Mali is exploring strategies to align the mining industry with global carbon net-zero goals, which remain under development. 1.2 Legal System and Sources of Mining Law 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 writ - ten 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 2024-0396, dated 9 July 2024, and Law No 2023-041 relating to the local mining sector, together constitut - ing the regulatory framework of the mining industry in Mali). The main sources of mining legislation in Mali are:
1.3 Ownership of Mineral Resources 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. 1.4 Role of the State in Mining Law and Regulations The state plays a dual role in the mining sector as both grantor-regulator and, to a limited extent, owner-oper - ator through mandatory government participation. • Grantor-regulator – the government regulates min - ing 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. Grant - ing 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 activi - ties in Mali.
• 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.
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