MALI Law and Practice Contributed by: Fabiola Andriamalala and Felana Ranaivoson, John W Ffooks & Co
• the Mining Code ensures fiscal and customs stability for investors; and • the developing mining infrastructure (eg, con - struction of a road corridor between Bamako and Dakar in the south (completed), San- Pédro and Bamako (in progress) and Bamako and Zantiebougou (in progress), and partner - ships with institutions like the World Bank (eg, Programme de Gouvernance du Secteur Minier (PGSM)) enhance its appeal. The government also emphasises transparency and legal security to reassure investors, includ - ing via Initiative pour la Transparence dans les Industries Extractives (ITIE). 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors There are no restrictions on foreign investment in the exploration and mining sectors in Mali. However, Mali has specific rules for foreign investment in the mining sector. Mining activ - ity relating to substances subject to the mining regime is authorised by virtue of a mining title. The mining titles provided for in the Mining Code include: • exploration authorisation; • exploration permits; • artisanal mining permits; • small-scale mining permits; and • large-scale mining permits. While the sector is open to foreign investment, there are some legal requirements, such as com - pliance with environmental requirements and contributions to local development. The initial legal requirements include compliance with envi - ronmental standards, such as conducting an EIA
before any exploration or mining project. Min - ing companies must also develop a site reha - bilitation plan after mining activities. Also, min - ing companies must partner with local entities or support the training of the Malian workforce. Regarding local development, investors are required to fund community projects, such as building infrastructure or supporting education and healthcare. Finally, they are 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 spe - cifically favour and protect investments in explo - ration and mining, including: • the Convention Establishing the Multilateral Investment 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 invest - ment 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 explora - tion, development and mining in Mali is foreign direct investment, primarily from international mining companies. For instance, the mining giant Barrick Gold, the world’s second-largest gold producer, has made significant investments in the Loulo-Gounkoto
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