 |
February 19, 2018, 01:16:49 PM |
|
Mining has long formed an important aspect of the Malian economy.
When modern commercial gold mining started in 1984, it accounted for only 1.5% of Mali’s Gross Domestic Product (GDP). In 1991, after a commercial mining code reflecting internationally accepted standards was implemented according to the International Development Association, commercial gold production proliferated from 4 metric tonnes that year to 48 metric tonnes in 2008.
Simultaneously, Mali relaxed the enforcement of mining codes and this led to greater foreign investment in the mining industry. From 1994 until 2007, national and international mining companies were granted approximately 150 operating licences along with more than 25 certificates for mineral exploitation and an excess of 200 research permits.
Government revenue originating from mining contracts totalled less than 1% of the state’s income in 1989, but increased to nearly 18% in 2007. Rising international gold prices have also increased exploration, investment, and production in the mining sector.
The upsurge in gold prices, from an average US$ 445 per ounce in 2005 to US$ 900 per ounce in 2009, has nearly doubled Mali’s profit on gold production. This increase in the gold price has translated into higher royalties (a minimum of 3% and maximum of 65% depending on when the mine started production), profit taxes, and dividend payments.
BTC
|
