NEW! CURRENT POLITICAL SITUATION
Despite the current political situation in Mali since the March 2012 coup -- Great Quest continues to advance its project through the engineering test work and economic analysis undertaken by our South Africa-based contractor. The Company has an office in Bamako and maintains its plans to resume work on the ground as soon as the situation permits. Mali has a twenty-year history of democratic rule and expectations are that this tradition will continue. The Company will comment further once details and official news become available. (November 2012)
Located in West Africa, Mali is a vast landlocked country of 15.4m and is highly dependent on gold mining and agricultural exports for revenue. With a gold production at 46 metric tonnes in 2010, Mali is the third largest gold producer in Africa behind South Africa and Ghana. Other economic activity is largely confined to the riverine area irrigated by the Niger River and about 65% of its land area is desert or semi-desert. The government has continued an IMF-recommended structural adjustment program that has helped the economy grow, diversify, and attract foreign investment.
In 1991, following the lead of the International Development Association, Mali relaxed the enforcement of mining codes which led to greater foreign investment in the mining industry. From 1994 to 2007, national and foreign companies were granted around 150 operating licences along with more than 25 certificates for exploitation and more than 200 research permits. Gold mining in Mali has increased dramatically, with more than 50 tonnes in 2007 from less than half a tonne produced annually at the end of the 1980s. Mining revenue totaled some 300 billion CFA francs in 2007 (US$ 563 million equivalent) more than a thirty times increase from the 1995 total national mining revenue of less than 10 billion CFA. Government revenues from mining contracts, less than 1% of the state income in 1989 were almost 18% in 2007. Mining friendly Mali has attracted large private investments including Anglogold-Ashanti ($250 million) in Sadiola and Yatela, and Randgold Resources ($140 million) in Morila. Other miners, including Endeavour, Anglogold, Iamgold and Randgold, have operation in the country.
Mali is developing its cotton and iron ore extraction industries to diversify its revenue sources. Furthermore this West African nation has abundant mineral wealth in bauxite, uranium, diamond, base metals and phosphate deposits. Mali is building a road network that will connect it to all adjacent countries and it has an existing railway line to Senegal.
Index Mundi Mali Economy Profile 2012
Consultancy Africa Intelligence