Mali creates state-owned company to manage mining holdings

Reuters02-09 18:30
Mali creates state-owned company to manage mining holdings

BAMAKO, Feb 9 (Reuters) - Mali will create a state-owned company to manage holdings in mining companies, according to a statement released by the council of ministers.

Other resource-producing countries in West Africa such as Niger and Guinea have been managing their assets through similar state-owned mechanisms.

The company Sopamim, whose capital is fully owned by the state, will acquire and manage Mali's holdings, according to the statement released late on Friday.

The West African country is one of Africa's largest gold producers, with mining companies including Barrick Gold ABX.TO, B2GOLD BTO.TO, Resolute Mining RSG.AX, Endeavour Mining EDV.L and Hummingbird Resources active in the gold-rich western and southern regions.

In 2022, Mali created another state-owned company called Sorem with the aim to explore and develop mineral resources.

Mali's military rulers introduced a new mining code in 2023, expanding state and local ownership of mines to at least 35% from 20%.

The new code also increased tax collection, helping to push up state revenues from gold mining companies by 52.5% in 2024.

Last month, Mali named a former Barrick executive as special adviser to the presidency who will oversee the mining sector.

(Reporting by Tiemoko Diallo; Writing by Anait Miridzhanian;Editing by Ros Russell)

((Anait.Miridzhanian@thomsonreuters.com;))

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