MALI Law and Practice Contributed by: Fabiola Andriamalala and Felana Ranaivoson, John W Ffooks & Co
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 Min - ing 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 compen - sation 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 sec - tor as both grantor-regulator and, to a limited extent, owner-operator through mandatory gov - ernment participation. • Grantor-regulator: The government regulates mining activities, issuing permits or authori - sations 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 man - datory participation rights in mining projects. For instance, under the Mining Code of 2023, the state holds a free 10% share in all min - ing 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 min - ing company is thus the counterpart to the
granting of such licence. Apart from this free participation, the state can increase its par - ticipation 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 min - ing activities in Mali. 1.5 Nature of Mineral Rights Mineral rights do not have any constitutional basis in Mali. The mining code states that natu - ral deposits of mineral substances in the soil and subsoil of Mali automatically belong to the state. Thus, mineral rights have the status of property under mining permits or authorisations. Holders of mining permits or authorisations have spe - cific rights to use the resources, but these are conditional and subject to compliance with legal requirements. 1.6 Granting of Mineral Rights Mineral rights in Mali are granted by the ministry in charge of mines, which is the national-level authority responsible for managing the mining industry. There are no overlapping jurisdictions. Mineral rights are granted through an admin - istrative act, typically in the form of permits or authorisations depending on the activity. 1.7 Mining: Security of Tenure A mining agreement entitled the “establishment agreement” is firstly concluded between the Malian state and the mining licence holder in order to set out the rights and obligations of the parties. The Mining Code of 2023 provides for two types of establishment agreements:
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