Mining Companies in Mali Face Pressure from Rising Royalties and Insecurity

Mining companies in Mali are facing increasing pressure driven by higher royalties and government fees, supply chain challenges linked to security unrest, and legal disputes with authorities regarding the implementation of the 2023 Mining Code.

While several companies have managed to continue operations despite road blockades and armed attacks, developments reveal a more complex operating environment for a sector that is a key source of exports and public revenue in the country.

According to a report by the French magazine "Jeune Afrique," the wave of blockades imposed by the Jama'at Nusrat al-Islam wal-Muslimin (JNIM) group during the first half of 2026, following a turbulent year in 2025, cast a shadow over the Malian economy, with disrupted roads, burned fuel trucks, and congested service stations. The mining sector was not immune to these repercussions, although their impact varied among companies and mines.

Supply Disruptions Pressure Gold Production

Canadian company Resolute Mining noted in its semi-annual results published on August 20 that operational difficulties at the Syama gold mine, located in southeastern Mali, could affect its production during 2026.

The company expects production to range between 195,000 and 210,000 ounces, with a possibility of approaching the lower end of the target range, amid complexities faced in securing explosives necessary for mining operations.

The mine had produced 176,341 ounces during 2025, an 18% decrease compared to 2024. Challenges were not limited to the security situation but also included delays in equipment delivery and the scheduled shutdown of one of the on-site processing units.

"Jeune Afrique" quoted Soumaila Lah, an economist and specialist in extractive industry regulation, as saying that Resolute Mining was the only company to publicly announce the difficulties it faces, noting that insecurity alone does not explain the company's operational problems.

Despite these challenges, the Syama mine remains one of the company's key assets in the region. During the first half of 2026, its production reached 73,683 ounces of gold, compared to 31,112 ounces from the company's Mako mine in Senegal.

Other Companies Continue Operations Despite Attacks

In contrast, other mining companies were not affected by the security blockade to the same extent, according to the report. During the blockades witnessed in the country in 2025 and the first quarter of 2026, companies faced difficulties on national roads RN1, RN3, and RN7, without any of them officially declaring force majeure.

On August 22, 2025, the Bougouni lithium mine, operated by British company Kodal Minerals, was attacked by gunmen on motorcycles, but operations did not stop.

A convoy transporting equipment to the Siadiola mine, operated by Allied Gold, was also attacked in May of the same year, without reports of significant operational repercussions.

The Siadiola mine achieved gold production ranging between 200,000 and 205,000 ounces in 2025, a 5% increase over the previous year, with revenues exceeding $500 million, making it a key asset in the portfolio of the Toronto-listed company.

The magazine quoted Soumaila Lah stating that mining companies largely survived the repercussions of the security crisis, explaining that mines located in the Kayes region, which contribute about 80% of national production, did not officially record disruptions linked to insecurity, while available data indicates stable production.

To mitigate the risk of supply interruptions, companies rely on building strategic fuel stocks that sometimes last weeks or months, ensuring the continued operation of facilities requiring energy. The state has also reinforced the deployment of Malian armed forces along certain strategic corridors used by convoys associated with mines.

Higher Royalties Amid Rising Gold Prices

In addition to security risks, companies face increasing financial burdens with the application of the new Mining Code issued in 2023. Resolute Mining announced that it paid royalties worth $52.3 million during the first half of 2026, compared to $31.2 million during the same period of the previous year.

Royalties related to the Syama mine alone amounted to $43.6 million, versus $21.5 million a year prior.

The increase coincided with rising gold prices, which exceeded $4,000 per ounce. The Malian Mining Code stipulates a royalty calculation mechanism linked to the metal price, where the rate ranges between 3% and 8% depending on the ounce price, with the possibility of increasing it by 0.5 to 1 percentage point whenever the price exceeds the $2,000 level.

Disputes Over Legal Stability

Provisions of the 2023 Mining Code remain disputed between authorities and companies operating in Mali, three years after its enactment. Part of the conflict centers on agreements signed before its entry into force, which include clauses guaranteeing the stability of legal and tax conditions for specific periods.

Article 218 of the law states that the previous regime continues to apply until the expiration of existing licenses. Companies claiming compliance with the new rules seek to rely on stability clauses to preserve privileges negotiated under previous legislation.

"Jeune Afrique" quoted a sector specialist working on this file as saying that some signed agreements still need amendments, adding that arbitration clauses were not always satisfactory, and that some contracts transferred legal provisions without adapting them to the specificity of the relevant mines.

Thus, mining companies in Mali face intertwined challenges: supply security, rising tax burdens, and legal uncertainty. While the state seeks to increase its revenues from natural resources, the balance between tightening collection and maintaining investment continuity remains one of the key files that will determine the future of the sector.