MALI Law and Practice Contributed by: Fabiola Andriamalala and Felana Ranaivoson, John W Ffooks & Co
mine. The World Bank, which funds projects such as the PGSM to improve resource manage - ment, and Banque Africaine de Développement (BAD), which supports initiatives 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 lim - ited but growing support. Lastly, public-private partnerships (PPPs) are used for infrastructure projects supporting the mining industry. 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 Barrick 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 exploration and development in Mali. In addition, though limit - ed, local mining companies can access region - al financial markets, such as the West African Regional Stock Exchange (Bourse Régionale des Valeurs Mobilières (BRVM)) based in Abid - jan. These markets help channel local invest - ments into the mining sector. 5.6 Security over Mining Tenements and Related Assets The Malian Mining Code does not prohibit the following (pledges, mortgages, etc) from being used as security in connection with mining exploration, development 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 transformation over the next few years, driven by its focus on energy transition minerals (eg, cobalt, copper, lithium, graphite). The government has taken a proactive approach by securing a 35% stake in Goulamina (ie, in the Goulamina lithium project), the country’s second largest lithium mine, underscoring its intention to capitalise on the rising demand for clean energy materials. Legislative amendments, including the revised Mining Code of 2023, allows the gov - ernment to hold up to 10% equity in new pro - jects, with the option to buy an additional 20% during the first two years of operation. A 5% stake can be ceded to locals, taking state and private Malian interests in new projects to 35%, up from 20% today, and certain tax exemp - tions have been abolished. Additionally, Mali is exploring strategies to align its mining industry with global carbon net-zero goals, which remain under development. These changes reflect a balance between exploiting mineral wealth, particularly lithium, and resolving the problems of environmental and economic sustainability in Mali.
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