West African military rulers shake up mining sector with tough new demands
Military governments in Mali‚ Burkina Faso and Niger push Western mining firms for better deals and higher payments. Recent executive arrests and permit threats make companies re-think their regional strategies
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
