Why does Mali suspend the artisanal mining permits for foreigners and what are the implications for the local economy?


### Mali: Towards a necessary reform of artisanal mining

Mali, a solid bastion of an economy focused on gold, announces a series of drastic measures aimed at regulating the activity of foreign artisanal mining companies after a series of tragic accidents in the sector. Announced by the president of the transition, General Assimi Goita, this decision testifies to an increasing concern in the face of the dangers inherent in an often anarchic exploitation, which, not only jeopardizes workers’ safety, but also exacerbates tensions between the State and the companies operating on his soil.

#### A quick decision in the face of tragedies

The suspension of operating licenses for foreign mining companies has been decreed as a result of fatal accidents that occurred recently, raising crucial questions about the security of artisanal mining practices. The craft operations sector, which contributes approximately 6 % of the annual gold production of Mali, represents a vital source of income for more than 2 million Malians. However, this wealth sometimes turns into misfortune: accidents such as those in the regions of Koulikoro and Kayes at the start of the year, where several lives have been lost, are tragic illustrations of an unregulated industry.

The evolution of legislation, which includes the confiscation of mining equipment in violation, aims to strengthen the authority of the State. The Minister of Security and Civil Protection, Gen. Daoud Ali Mohammedine, explained that these measures will make it possible to defend the interests of the Malian people while integrating these resources into the national heritage. A paradigm shift which could, however, have long -term economic repercussions.

### economic and socio -political reflection

It is a question here of much more than occupational safety. The decision to suspend licenses could create a precedent in a country where the economy is already under pressure due to internal conflicts and political instability. In fact, for several years, the mining has been associated with funding for extremist groups in the north of the country. According to some sources, the revenues generated by the deregulated exploitation could have fueled insurgents, thus exacerbating a cycle of violence and instability which grafted the socio-economic development of Mali.

In addition, this situation highlights a latent conflict between the application of extractive laws and the economic rights of local populations. Companies like Barrick Gold, B2gold and Resolute Mining were at the epicenter of increasing tensions with the military authorities, revealing a normative framework in discrepancy with the realities on the ground. The claim by the state of higher payments and compliance with the new mining code bear witness to a desire to renegotiate the social contract between the Malian people, the state and foreign investors.

#### What it means for the future

At first glance, these reforms seem to guarantee not only workers’ safety, but also to restore confidence between stakeholders. However, a more in -depth analysis reveals that the transition to stricter regulation could have long -term effects on direct foreign investment in the country. Fear of an arbitrary confiscation of equipment could discourage companies likely to invest in a secure and sustainable infrastructure.

In comparison, other West African countries, such as Ghana, have managed to set up mining governance systems which, while protecting natural resources, guarantee workers’ safety and encourage responsible partnerships. Learning from these examples could be beneficial for Mali, which desperately seeks to get out of a cycle of poverty and conflict.

#### Conclusion

The recent decisions of the Malian government must be perceived not only as a reaction to recent tragedies, but also as an opportunity to rethink the entire mining policy of the country. Gold, although being a vital asset for the economy, can become a burden if resources are not managed in a responsible and inclusive manner. For the future of Mali, it is essential to find a balance between economic development, workers’ safety and the protection of natural resources, in order to ensure sustainable prosperity for future generations.

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