In Mali, Transitional President Assimi Goïta promulgated the new Mining Code on 29 August 2023. The new Code corrects many of the shortcomings of the old one. Dr Ahamadou Mohamed Maiga presents the Code’s major innovations.
For Dr Ahamadou Mohamed Maiga, this reform involves strengthening the fiscal and environmental arrangements for mining companies, while standardising the applicable mining regime, and also placing particular emphasis on local content, through the nationality privilege.
On the subject of innovations in the Mining Code, Dr Ahamadou Mohamed Maiga noted that some changes had been made to the provisions relating to State participation in the share capital of operating mining companies. With regard to free State participation, unlike article 65 of the 2019 Mining Code, which set free State shares at 10%, the new wording in the 2023 reform is still open to interpretation. According to the new provision, the granting by the State of an operating licence entitles it to a free holding of at least 10% of the operating share capital. It therefore gives the State the option of increasing its stake to more than 10%, depending on the economic importance of a mining project.
Unlike the 2019 Mining Code, which does not distinguish between agreements when they are signed, the new Code provides for the signing of 2 separate establishment agreements, one for the exploration phase and one for the exploitation phase. This procedure will enable the State to have an idea of the results of the research phase and to manoeuvre negotiations more effectively if an agreement is signed for the exploitation phase. It should be noted that the establishment agreement for the exploration phase requires the favourable opinion of the Ministers of Mines and Finance and approval by decree by the Council of Ministers. It also requires the co-signature of the aforementioned ministers. The establishment agreement for the exploitation phase follows the same signature principles after approval by decree by the Council of Ministers.
One of the innovations in the Malian Mining Code is the State’s cash stake. This innovation lies in the way it is calculated. One of the key elements taken into account in calculating the cash shareholding is the tax expenditure or exemptions granted by the State to the holder of the exploration licence and its subcontractors in the area under exploitation. This tax expenditure is deducted from the amounts paid to the company in respect of the State’s cash interest.
It should also be noted that the new Mining Code establishes 5 types of mining fund, including a local development fund, a fund to rehabilitate and secure artisanal mining sites and combat the use of prohibited chemicals, a fund to finance the promotion of the mining sector, a fund to finance geological research, capacity building and training, and a fund to build energy, water and transport infrastructure.
Tiba Kassamse OUEDRAOGO
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