MALI Law and Practice Contributed by: Felana Ranaivoson and Tiavina Rakotonaivo, John W Ffooks & Co
5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining The mining companies operating in Mali, such as Bar - rick 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 explo - ration 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 Mobil- ières (BRVM)) based in Abidjan. These markets help channel local investments into the mining sector. 5.6 Security Over Mining Tenements and Related Assets The Malian Mining Code does not prohibit the fol - lowing (pledges, mortgages, etc) from being used as security in connection with mining exploration, devel - opment 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. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector The mining sector will undergo a significant transfor - mation over the next few years, driven by its focus on energy transition minerals (eg, cobalt, copper, lithium and graphite). The government has taken a proactive approach by securing a 35% stake in Goulamina (ie, in the Gou - lamina lithium project), the country’s second-largest lithium mine, underscoring its intention to capitalise on the rising demand for clean energy materials. Leg - islative amendments, including the revised Mining Code of 2023, allows the government to hold up to
often required to prioritise the hiring of local workers and provide technical training. 5.3 International Treaties Related to Exploration and Mining Mali participates in multilateral treaties that specifi - cally favour and protect investments in exploration and mining, including: • the Convention Establishing the Multilateral Invest - ment 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. 5.4 Sources of Finance for Exploration, Development and Mining One of the main sources of finance for exploration, development and mining in Mali is foreign direct investment, primarily from international mining com - panies. For instance, the mining giant Barrick Gold, the world’s second-largest gold producer, has made sig - nificant investments in the Loulo-Gounkoto mine. The World Bank, which funds projects such as the PGSM to improve resource management, and Banque Afric- aine de Développement (BAD), which supports initia - tives 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.
238 CHAMBERS.COM
Powered by FlippingBook