Mali licence change sparks more uncertainty for African mining industry

The West African state confirmed late last week that it was revoking permits for international companies operating in the country.

The permits, which had been issued between 2015 and 2022, were for exploration of gold, bauxite, uranium and other minerals, with the revocation signed by the country’s mines minister, Amadou Keita.

Edward James and Vishana Mangalparsad, corporate crime experts at Pinsent Masons, said the decision was a sign of an increasing shift in the region.

“The move is part of a recent trend across the African continent which has seen various countries amending their laws and regulations in an effort to increase the benefits to local stakeholders,” said James.

“Mining sector investors should be aware of these changes and be ready to handle any subsequent risks that may arise.”

Mali, which operates under military rule, had paused a suspension of its mining permits earlier this year in the wake of adopting a new national code for mine operations which opened the door for greater state and national involvement in the process, following similar changes by Zambia and Botswana last year.

Neighbouring Burkina Faso announced it was nationalising its mining operations around the same time, with Uganda launching its own state-owned mining company in the summer of 2025.

Under the decree, the previous permits – and their associated rights – have been opened for reallocation, with no detail given whether the companies impacted by the decision have any recourse for appeal.

“This decision is indicative of a trend in Africa where governments are looking to increase government ownership and local participation through legislative change,” said Mangalparsad.

“There have also been more radical interventions in the mining sectors of certain African regions in the past year. Maintaining the rule of law is essential to prevent unintended consequences and to effectively promote sustainable development.”

James added that the current trend, while the legitimate right of states to determine how to manage their mineral wealth, eroded investor confidence and created compliance risk.

”If international investors do not believe they will have security of ownership of the mines that they develop, they will not invest in exploration activities or building mines,” he said.

“For those that have already invested, the arbitrary threat or actual steps to take away mining rights may create acute compliance risk. Gatekeepers in positions of power may seek to solicit bribes under the premise that they can change the course of action and ensure that the mining rights are protected. International investors should obviously resist the temptation to bribe and look to resolve matters through legitimate means.”

“Mining companies need to develop careful legal and compliance strategies if they are impacted by the current action in Mali or future similar steps in the region.”