Mali Reclaims $1.2bn from Mining Giants After Audit Exposes Massive Revenue Gaps

Mali has recouped $1.2 billion in unpaid taxes, royalties and arrears from mining companies following a major sector-wide audit that exposed significant payment shortfalls, according to a Reuters report. The recovery marks one of the country’s most substantial financial turnarounds in recent years and underscores the government’s push to assert greater control over its mineral wealth.

The 2023 audit, ordered by the transitional government, revealed gaps estimated between $500 million and $1 billion in company declarations, sparking a wave of negotiations and disputes with both gold and lithium operators. The findings triggered sweeping reforms, culminating in a new mining code that raised royalty rates, increased state shareholding in mining ventures, and removed long-standing stability clauses that had shielded companies from legal and fiscal changes for decades.

One of the most contentious disputes involved Barrick, Mali’s largest gold producer. The company and the government were locked in a two-year standoff over tax and royalty claims before reaching a settlement in November. It remains unclear whether Barrick’s reported $400 million settlement is included in the recovered $1.2 billion.

Other major operators, including B2Gold, Allied Gold, Endeavour Mining, Resolute Mining, and emerging lithium producers such as Ganfeng Lithium and Kodal Minerals, have also settled outstanding obligations under the revised regulatory framework. Industry analysts say the new code has reshaped Mali’s mining landscape, increasing fiscal pressure on companies while boosting government revenue potential.

Officials in Bamako have said the reforms were necessary to ensure the country benefits more equitably from its mineral resources, particularly as gold accounts for more than 70 per cent of Mali’s export earnings. Lithium, poised to become a major growth sector, has also drawn heightened scrutiny as global demand for battery minerals accelerates.

The government now projects annual mining revenue to exceed $1.6 billion under the 2023 code significantly higher than previous years and crucial for a state grappling with security challenges and declining foreign aid. Economists note that increased mining revenue could provide a financial buffer for the transitional government and help fund critical infrastructure and social programmes, though they caution that regulatory uncertainty may deter future investment if disputes persist.

Despite the substantial recovery, questions remain over the long-term impact of the reforms. Critics warn that abrupt fiscal changes could strain relations with multinational operators and complicate future project expansions. Supporters, however, argue that the new code corrects years of imbalance and strengthens Mali’s bargaining position in a sector central to its economic stability.

For now, the $1.2 billion recovery stands as a significant victory for Mali’s efforts to enforce compliance and reclaim revenue long considered lost to weak oversight and outdated mining agreements.