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AFRICA

fiscal and regulatory stability had ena-
bled the company to make further invest- Mining companies have long complained
ment in its Syama gold mine in the coun- that Egypt’s system of mandatory JVs, stiff
try’s south. royalties and profit-sharing agreements
“We have invested in Syama because have made it unprofitable to explore for and
we have long-term faith in the Malian exploit minerals.
Egypt is hoping a change in rules might
Malian stability mining regime,” Welborn said. “The abil- lead to a bonanza in gold production. Neigh-
ity to invest further is going to be predi-
cated on transparency we can bring and bouring Sudan produced an estimated 93t
20 not 30 years that our partners can bring.” of gold in 2018, which according to the U.S.
Geological Survey made it Africa’s third big-
gest producer.
nder a new mining code, companies The cabinet statement indicated that al-
Uoperating in Mali will be protected though the Egyptian Mineral Resources Au-
from fiscal changes for 20 years, down thority had the right to form JV with a mini-
from the previous “stability period” of 30 mum state ownership of 25%, private mining
years, the mines minister said in January. companies would not necessarily have to do
Mali had previously proposed a 10- this if their mining agreements were ratified
year stability period. But that came under New code for by law.
criticism for being too short and likely to The statement also said mining compa-
discourage investors. Egypt nies would have to pay a rental value for
“We have to consider that the re- their mines and quarries as well as royalties
search phase can take at least seven, at a separate rate determined for each type
eight or nine years,” said Mines Minis- gypt has issued new regulations that of ore extracted.
ter Lelenta Hawa Baba Bah. “So, we’ve Eappear to eliminate the need for min- While considered highly prospective,
gone for... a 20-year stability period.” ing companies to form JVs with the Gov- Egypt has failed to entice commercial min-
Mali has emerged as one of the larg- ernment and to limit state royalties to a ers. The only existing operator is Centamin
est gold producers in Africa with the likes maximum 20%, measures long advocat- plc, which produces 450,000 ozpa from its
of Barrick Gold Corp, AngloGold Ashanti ed by the private sector. Sukari gold mine. Last month, fellow African-
Ltd, B2Gold Corp and Resolute Mining The cabinet released a summary of the focused gold miner Endeavour Mining Corp
Ltd among operators in the country. executive regulations to the mining law after dropped its hostile takeover bid for Centamin
In December, Resolute managing di- its weekly meeting on January 15. The law after failing to win support of its target’s
rector John Welborn told Paydirt Mali’s itself was issued in August. board.

Under Mali’s new mining code,
companies such as Resolute
Mining will be protected from
fiscal changes for 20 years

aUSTRaLIa’S PaYDIRT FeBRUaRY 2020 Page 69