Malian Government Bans 71 Gold Mining Companies

Malian government bans 71 gold mining companies

DAKAR, March 7 (Xinhua) — The government of Mali has banned 71mining companies from engaging in gold mining activities in the country in a measure which could be extended to other companies operating in the sector, according to information reaching here.

The government cancelled 71 permits, out of the current 222 still valid, of companies which have failed to respect the terms and conditions of the prospecting contract, the Pan-African News Agency (PANA) reported Thursday.

Nearly 40 other contracts are in the process of being signed, according to the Malian government, while six other mining companies are currently conducting operations, with two in the development phase.

The gold sector, which has over the last five years become the leading export product in Mali instead of the troubled cotton sector, is also experiencing a significant slow production.

Official projections predict a production of 46,013 tons in 2008 compared with 52,753 tons in 2007, and a record production of58,382 tons in 2006.

Gold contributed a total of 116 billion CFA francs ( 270 million U.S. dollars) in 2006 to the country’s economy, according to sources.

Mali is officially the third leading gold exporter in Africa behind South Africa and Ghana, an enviable position which has however failed to improve the living conditions of the ordinary population. The country’s civil society recently called for more transparency on the resources accruing from gold sales.

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