Western mining operations in Mali‚ Burkina Faso and Niger face new-found pressures as military-led governments push for better terms. The regions gold-rich deposits which brought huge profits now create head-aches for international firms (especially since last fall)
Recent detentions of mining executives in Mali show how things changed: Mark Bristow‚ Barrick Gold CEO faces arrest warrant while four company workers sit in custody. Maliʼs government wants $500 million from Barrick – a claim the firm dont agree with
The three countries produce 1/4 of Africaʼs gold; with Mali being second-largest producer on the continent. Local authorities changed rules after military take-overs – demanding extra cash from foreign companies: Mali alone got $635-million in additional payments this year
- Resolute Mining paid $100-million after CEO detention
- B2Gold signed fresh agreements with Mali
- Robex Resources tries to sell its mine but cant find buyers
- Endeavour Mining sold assets to Burkina Faso for $60-million
Insurance costs went way-up: premiums are now three-times higher than in 2019. One un-named Western fund manager said:
We wouldnt invest in Mali now
The situation gets more complex as these nations move closer to Russia and away from France‚ US‚ and UN partnerships. While day-to-day mining continues local military rulers hint they might look east for new mining partners if Western firms dont play ball
Mining experts see this as part of bigger changes: “They could find themselves getting new demands in coming years“ says Vincent Rouget from Control Risks who works with regional miners