Mali plans to use revenues generated by its mining reforms to support as much as CFA500bn ($883.1m) in financing for energy, water and transport infrastructure, Minister of Economy and Finance Alousseni Sanou has said.
The Mali mining infrastructure fund would turn regular payments from mining companies into a financing base for larger public projects. It marks a shift from collecting higher mining revenues to using them to attract infrastructure investment.
No signed financing agreements, approved expenditure or project start dates were disclosed in the remarks reported by Reuters.
Fund mobilises CFA109bn
Speaking on state television after the first meeting of the Energy, Water and Transport Infrastructure Development Fund, Sanou said the mechanism mobilised CFA109.14bn ($192.8m) between January 1, 2025 and June 30, 2026.
The fund was established under Mali’s 2023 mining reforms and is financed exclusively by contributions from holders of industrial and small-scale mining permits, the minister said.
Sanou explained that mining companies contribute one percent of quarterly turnover during a mine’s first five years, rising to two percent thereafter. During the first five years, companies also direct 10 percent of their ad valorem tax payments to the fund.
Those recurring contributions generate at least CFA50bn ($88.3m) annually, according to the minister. He said the income could be used to attract substantially larger amounts from lenders and other partners, potentially supporting infrastructure financing of up to CFA500bn ($883.1m).
Mining income shifts to development
The plan gives a clearer development purpose to Mali’s push for a larger share of its mineral wealth. The government’s revised mining code increased state participation in projects, changed royalty arrangements and tightened fiscal obligations for operators.
Mali has since pursued mining companies for payments it says were outstanding under earlier agreements.
The government previously said an audit and subsequent negotiations had recovered CFA761bn ($1.34bn) in mining arrears, reinforcing its argument that the country had not received a sufficient return from its mineral resources.
The reforms also created tension with international operators. Barrick Mining became involved in a prolonged dispute with the authorities over taxes, ownership terms and the application of the revised code at the Loulo-Gounkoto gold complex.
A subsequent agreement led to the release of detained Barrick employees, although the confrontation highlighted the investment risks surrounding the reforms.
Financing still carries risks
Using predictable mining income to support infrastructure finance could allow Mali to advance projects that might otherwise be delayed by limited budget resources.
Energy shortages, inadequate roads and weak transport connections remain significant constraints on production, trade and access to basic services.
However, the CFA500bn ($883.1m) figure represents potential financing capacity rather than money already secured
Delivery will depend on the stability of mining payments, lender confidence, project selection and the government’s ability to manage debt, contracts and procurement risks.
Commodity prices will also be important. A decline in gold or other mineral revenues could reduce contributions, while disputes with operators could interrupt production or delay payments.
Credit: Africa Briefing
