(Ecofin Agency) - Mali has reported a shortfall of 300 to 600 billion FCFA in 2023 after auditing mining companies. To address the issue, the government is negotiating with industry players and strengthening its legal framework.

During the Council of Ministers meeting on September 11, 2024, the Malian government adopted a decree on financial infractions. This decree updates a 2016 regulation to ensure proper handling of violations in the local mining sector.

The decree outlines the rules for addressing financial law breaches among countries in the West African Economic and Monetary Union (UEMOA). It specifies the conditions under which authorities can negotiate transactions to avoid legal action against those committing financial offenses.

An audit conducted between 2022 and 2023 revealed a shortfall of 300 to 600 billion FCFA (up to $1 billion) for the State. To rectify these irregularities, the government initiated talks with several mining companies, resulting in several agreements.

"The draft decree, which has been adopted, amends decree n°2016-0801/P-RM of October 20, 2016, to enable the correct handling of the infractions noted and preserve the essential economic and financial interests of the State and the mining sector," the Council of Ministers stated.

Mali produced 72.5 tons of gold in 2023. It is one of Africa's top gold producers. Overall, the mining sector, primarily focused on gold, accounts for about 10% of GDP, 20% of government revenues, and 80% of exports, according to the Extractive Industries Transparency Initiative.

Emiliano Tossou