Mali Establishes State — Owned Mining Management Company. Bamako, Mali — Mali has announced the creation of a state-owned company, Sopamim, to manage its mining assets, with the aim of boosting state returns from the sector.
The move is in line with the country’s 2023 mining code, which mandates that state and local ownership in mines be at least 35%, up from 20% previously, and has reinforced tax collection mechanisms.
Sopamim will act as a vehicle for the Mali government to track, value, and enforce its equity rights in mining projects.
The establishment of Sopamim is a part of Mali’s broader strategy to increase its control over its mining sector, a significant economic driver for the country.
The West African nation, a significant gold producer, is home to several major mining companies, including Barrick Gold, Resolute Mining, Endeavour Mining, and Hummingbird Resources, which operate in the gold — rich western and southern regions.
In 2022, Mali already established a company called Sorem, focused on the exploration and development of mineral resources.
The creation of Sopamim and Sorem reflects a trend in West Africa where resource — producing countries are taking a more active role in managing their mining assets to secure better returns and control over their natural resources.
According to the Mali council of ministers, Sopamim’s capital is fully owned by the state and will acquire and manage Mali’s holdings.
The company is not intended to run mines but is a shareholding vehicle that will centralize how the state tracks, values, and enforces its equity rights in mining projects. Mali’s military rulers introduced a new mining code in 2023, which expanded state and local ownership of mines to at least 35% from 20%.
The new code also increased tax collection, leading to a 52.
5% increase in state revenues from gold mining companies by 2024.
The establishment of Sopamim has been compared to similar mechanisms in other West African countries like Niger and Guinea, indicating a regional trend towards greater state control over mining assets.
The move is seen as a positive step by Mali’s government to secure better returns from the mining sector.
However, the operational aspects of Sopamim and its impact on the mining sector are yet to be fully understood and may require further verification. Further details are expected as Sopamim begins its operations in managing Mali’s mining assets. Timeslive.
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Source: Africa.
*Additional reporting by ImNews | Sources consulted: 5*
