By Divya Rajagopal
Canadian miner B2Gold said it is moving forward with plans to invest $10 million in exploration at the Fekola gold complex in Mali this year after a settlement with the government over its mining code reduced the risk of disruption.
Mali introduced the new mining code in August 2023, as other military-led governments in West Africa have done. The code gives the state a bigger share of mining revenues and removes tax exemptions for mining companies.
B2Gold was one of the first companies to negotiate a settlement with Mali over its new code, settling an income tax demand in September and agreeing to move one part of its exploration to the new regulations. Fekola has a producing mine as well as ongoing exploration.
“From a B2Gold perspective, we have seen a reduction in risk since the signing of our settlement agreement,” said Clive Johnson, CEO of B2Gold, in an email late on Tuesday in response to Reuters questions.
Malian officials have detained and arrested employees from companies that did not agree to the new code and tax payments.
The country has issued arrest warrants for Mark Bristow, CEO of Barrick Gold – the biggest investor in the country. Mali this month seized $250 million of gold from Barrick’s Loulo-Gounkoto mine, and Barrick has suspended its operations
B2Gold’s Johnson said that the company does not expect any government effort to detain its managers in Mali.
“We have expatriate employees that move in and out of the country regularly, including some of the mine management, so there is no reason to think that any detention would ever be contemplated as it relates to B2Gold.”
Shares of B2Gold were trading up by 0.8% at the Toronto Stock Exchange on Wednesday at 1807 GMT.
(Divya Rajagopal in Toronto; Editing by Cynthia Osterman)
