Mali Sets Up State Company to Manage Mining Holdings

Mali has announced the creation of a new state owned company to manage the country’s shares in mining firms. The decision was approved by the council of ministers and marks a major step in the government’s effort to strengthen control over its natural resources.

The new company will be fully owned by the state of Mali. Its role will be to acquire and manage the government’s holdings in mining companies, ensuring that revenues and profits are properly accounted for. Officials say the move is part of a broader strategy to protect national interests in the mining sector, which is a key pillar of Mali’s economy.

Mali is one of Africa’s largest gold producers, and mining contributes significantly to government revenue. The country’s decision follows similar steps taken by Niger and Guinea, which have also set up state owned companies to oversee their mining interests.

The announcement comes after Mali concluded a long and bitter dispute with Canadian mining giant Barrick Gold. In recent years, Mali’s junta introduced a new mining code that gave the government a larger share of profits in the name of national sovereignty. Authorities accused Barrick of failing to pay taxes, royalties, and dividends owed to the state.

The dispute escalated when Mali seized gold stocks and shut down operations at the Loulo Gounkoto mine, one of the country’s most lucrative sites. The standoff created uncertainty in the sector and raised concerns among investors. However, in November last year, both sides announced that the dispute had been resolved.

Analysts say the creation of the new company is a direct outcome of that confrontation. By managing its holdings directly, Mali hopes to avoid future disputes and ensure that mining revenues are properly captured. The government believes this will strengthen its bargaining power with international mining firms and improve transparency in the sector.

The move also reflects a wider trend in West Africa, where governments are asserting greater control over natural resources. With gold prices remaining high, countries like Mali see mining as a critical source of income to support public spending and economic development.

Officials say the new company will help Mali safeguard its mining wealth, while also sending a signal to investors that the country is serious about enforcing its rules. For Mali, the creation of this company is not just about managing assets, it is about protecting sovereignty and ensuring that the benefits of mining are felt across the nation.