Malis Government pushes for re-assessment of all mining contracts

The interim government of Mali wants to review the mining conventions signed by previous administrations with companies, said interim president Bah N'daw late Friday on the recommendation of the country's chief auditor. Mali is one of the largest gold producers in Africa.

Companies operating in the country include Barrick Gold Corp and AngloGold Ashanti, as well as Resolute Mining. "The mining conventions contain clauses that do not always guarantee the protection of the interests of the state," said Auditor General Samba Alhamdou Baby after presenting his report to the interim president. "In particular, the non-distribution of dividends, the non-payment of certain taxes, to which the existence of unjustified credits that deprive the state of financial resources," he said.

He added that a review of the conventions would better protect the interests of the state while respecting the incentives for mining companies. Parliament passed a new code in April that removes VAT exemptions for mining companies during production and cuts the period of time they are protected from tax changes to 20 years. N'daw said the recommendations are instructions to the interim administration that will make the mining sector a priority during his 18-month tenure.

"I will assure you that everything will be done to ensure that the state lives up to its responsibilities and gets what it deserves from the mining sector," said N'daw. Mali's interim government was appointed earlier this month after the August 18 military coup that ousted President Ibrahim Boubacar Keita's government.