Minining in Mali

What are the main minerals mined in Mali and what are their primary uses?

Mali is a leading producer of gold, and is also known for its reserves of bauxite, iron ore, phosphate, and diamonds. Gold is the most important mineral produced in the country, and is primarily used for jewelry and as a store of value. Bauxite is the primary source of aluminum, and is used in the production of aluminum products such as cans, airplanes, and automobiles. Iron ore is used to produce steel, while phosphate is used in fertilizers. Diamonds are primarily used in jewelry, but are also used in industrial applications such as cutting and polishing tools.

The mining industry is a significant contributor to Mali's economy, and is the second-largest source of foreign exchange after agriculture. In 2018, the mining sector accounted for approximately 10% of Mali's GDP and over 70% of exports. The gold mining industry alone is responsible for about one-third of the country's total export revenue. The mining sector also creates jobs for thousands of people, both directly and indirectly, and has the potential to drive economic development in other sectors.

What challenges does the mining sector in Mali face, and how are they being addressed?

The government of Mali regulates and oversees the mining industry through the Ministry of Mines and Energy. The ministry is responsible for issuing mining licenses and permits, and for enforcing compliance with environmental and safety regulations. The government also establishes policies and laws related to mining, such as the Mining Code and the Mining Development Fund. The government works closely with the mining companies operating in the country to ensure that they are adhering to regulations and best practices.

But the mining sector in Mali faces a number of challenges, including a lack of infrastructure, limited access to financing, and a lack of skilled labour. Additionally, the sector faces regulatory and legal challenges, such as difficulties obtaining mining licenses and navigating complex regulations.

To address these challenges, the government of Mali has implemented a number of initiatives, such as the creation of a one-stop shop for mining permits, and the establishment of a mining development fund to provide financing for projects. The government is also investing in infrastructure projects and providing training for workers in the sector.

What measures are being taken to ensure the sustainable and responsible extraction of minerals in Mali?

The government of Mali is taking steps to ensure the sustainable and responsible extraction of minerals in the country. For example, the government has implemented a number of environmental regulations, such as the requirement for mining companies to conduct environmental impact assessments before commencing operations. Additionally, the government is working to promote sustainable mining practices, such as the use of cyanide-free gold extraction methods. Some mining companies operating in Mali also have their own sustainability programs in place.

The mining industry in Mali can have both positive and negative impacts on local communities and the environment. On the positive side, mining can create jobs, stimulate economic development, and improve infrastructure. However, mining can also lead to negative impacts, such as environmental degradation, loss of land, and displacement of communities. In order to mitigate these negative impacts, mining companies are often required to implement social and environmental programs, and to consult with local communities.

What role does artisanal mining play in Mali and how is it regulated?

Artisanal mining, also known as small-scale mining, or 'orpaillage'in the region plays a significant role in Mali's mining sector. Artisanal miners ('orpailleurs') extract gold, diamonds, and other minerals using manual methods, and often operate in informal, unregulated settings. The government of Mali recognizes the importance of artisanal mining to the economy and has implemented a number of initiatives to formalize and regulate the sector. For example, the government has established a program to provide training and support to artisanal miners, and is working to create a legal framework for small-scale mining. 

Nevertheless, as the gold mining sector in Mali is largely informal and therefor operates without government regulation, such artisanal and illicit mining can lead to environmental degradation and safety hazards for the miners. Additionally, the gold produced by orpailleurs is often smuggled out of the country and sold on the black market, which can contribute to money laundering and other illicit activities.

The informal nature of artisanal gold mining in Mali and the lack of government regulation has created an environment in which illegal mining and smuggling of gold is able to flourish. However, the profit margins for orpailleurs can be quite small due to a number of factors.

One major factor is the lack of access to modern mining technology and equipment, which makes it difficult for artisanal miners to extract gold in an efficient and cost-effective manner. Additionally, the informal nature of artisanal mining often means that miners lack the necessary skills and knowledge to extract gold in a safe and sustainable way.

Also, the illegal nature of the activity, can lead to miners being arrested and their equipment being seized by the authorities. Also, miners may have to sell their gold at a lower price to smugglers that may smuggle the gold out of the country.

Who are the buyers of that illegal gold? And what quantities are we talking about?

It is difficult to provide a specific answer on who the buyers of illegal gold from Mali are, as the smuggling of gold out of the country is often done through informal channels and is difficult to track. However, it is likely that the smuggled gold is sold to buyers in other West African countries, as well as in Asia and the Middle East.

A report from the United Nations Office on Drugs and Crime (UNODC) from 2019 states that "Mali is a major gold-producing country and a key transit and destination point for smuggled gold." The report goes on to say that "smuggled gold accounted for an estimated 20% of Mali's total gold production in 2018."

Another report from the U.S. Department of State's Bureau of African Affairs from 2020 states that "Mali is a significant gold producer and a major transit point for illegal gold. Smuggling of gold out of Mali is a significant problem, and a portion of smuggled gold likely originates from illegal mines."

According to the UNODC report, smuggled gold accounted for an estimated 20% of Mali's total gold production in 2018. The same report also states that the total value of smuggled gold from Mali is estimated to be around $300 million per year.

It's worth noting that the illegal gold trade from Mali is just a small part of a much larger issue of illegal gold trade from West Africa which is interconnected with money laundering, corruption, drug trafficking and other criminal activities.

Are non-state armed groups (rebels, terrorist networks, Jihadist groups) involved in or benefitting from such trade?

Yes, non-state armed groups, such as rebels, terrorist networks, and jihadist groups, have been reported to be involved in or benefitting from the illegal gold trade in Mali.

Reports indicate that these groups have been able to generate significant revenue from illegal gold mining and smuggling, which they use to fund their operations and activities. For example, terrorist groups such as al-Qaeda in the Islamic Maghreb (AQIM) and Ansar Dine have been reported to be involved in illegal gold mining and smuggling in Mali and other countries in the region.

In addition, some of these groups are known to extort money from local miners and traders, which allows them to gain a financial foothold in mining areas. Some reports also indicate that these groups use the proceeds from the illegal gold trade to purchase weapons and other military equipment.

It's worth noting that the involvement of these groups in illegal gold trade is not limited to Mali, but also present in other West African countries such as Burkina Faso and Niger, where illegal mining is a major issue.

What about child labour in these small-scale mines?

Child labor is a significant problem in the small-scale gold mining sector, including in Mali. Children are often used in artisanal mines to dig and carry ore, pan for gold, and process ore. Children working in small-scale gold mines are at risk of a wide range of hazards, including physical injuries and accidents, exposure to toxic chemicals, and psychological harm. They may also be exposed to violence and exploitation, and may be denied access to education and other basic rights.

Reports indicate that child labour is prevalent in Mali's artisanal gold mines, where children as young as six years old are known to work in dangerous conditions. According to the U.S. Department of Labour's 2020 Findings on the Worst Forms of Child Labour Report, children in Mali are engaged in child labour in the artisanal mining of gold, and are also forced to engage in begging.

It's worth noting that child labour is a complex issue and is not limited to Mali, but it also a big issue in other West African countries where illegal mining is a major problem such as Burkina Faso and Guinea.

Efforts to combat child labour in the small-scale mining sector are ongoing and include measures such as education campaigns, the implementation of child labour laws and regulations, and the development of alternative livelihoods for families who rely on small-scale mining for income. However, progress has been slow, and more needs to be done to address the problem.

Governments (across the world) have been unable to effectively eradicate child labour in industries such as small-scale gold mining for a number of reasons.

One major reason is poverty. Many families in rural areas, such as those where small-scale gold mining takes place, rely on the income generated by child labour to survive. Without access to alternative livelihoods, children may be forced to work in mines or other dangerous industries to help support their families.

Another reason is the informal nature of the activity. Small-scale gold mining is often done in remote areas, and illegal mines are difficult to locate and regulate. This makes it challenging for governments to monitor and enforce laws and regulations related to child labour in this sector.

A lack of resources and capacity is also a significant factor. In many countries, governments lack the necessary resources and capacity to effectively enforce laws and regulations related to child labor, particularly in remote and rural areas where small-scale gold mining takes place.

Additionally, corruption also plays a role in some cases. Government officials may turn a blind eye to child labor in small-scale gold mines, or may actively facilitate the use of child labor, in exchange for bribes or other forms of payment.

Lastly, the problem of child labour is often not a priority for the government and other actors, and the lack of political will can make it difficult to effectively address the issue.

In summary, child labour in small-scale gold mining is a complex problem that is driven by a number of factors, including poverty, the informal nature of the activity, a lack of resources and capacity, corruption, and a lack of political will. It is a problem that requires a multifaceted solution, involving the efforts of governments, civil society organizations, and the international community.

What are the future prospects for the mining industry in Mali, and what opportunities are there for investment?

The mining industry in Mali is expected to continue growing in the future, driven by rising global demand for minerals, particularly gold. The country has large untapped reserves of gold and other minerals, and there is significant potential for the discovery of new mineral resources. The government of Mali is actively promoting investment in the mining sector and has implemented a number of initiatives to attract investment. Opportunities for investment include the development of new mines, the expansion of existing mines, and the exploration for new mineral deposits.

References:

• Bureau of International Labor Affairs, U.S. Department of Labor. (2020). 2020 findings on the worst forms of child labor. Retrieved from https://www.dol.gov/agencies/ilab/reports/child-labor/findings
• International Labour Organization. (n.d.). Child labor in small-scale gold mining in the Philippines. Retrieved from https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-manila/documents/publication/wcms_575479.pdf
• United Nations Office on Drugs and Crime. (2019). West Africa: Illicit financial flows in the gold sector. Retrieved from https://www.unodc.org/documents/data-and-analysis/Studies/Illicit_financial_flows_gold_sector_West_Africa_2019_web.pdf
• U.S. Department of State's Bureau of African Affairs. (2020). Mali 2020 International Narcotics Control Strategy Report (INCSR). Retrieved from https://www.state.gov/wp-content/uploads/2021/03/Mali-INCSR-2020.pdf
• Congressional Research Service. (n.d.). Terrorism in West Africa: The Sahel and the Lake Chad Basin. Retrieved from https://fas.org/sgp/crs/terror/R45768.pdf
• Global Initiative against Transnational Organized Crime. (2018). Terrorism in the Sahel: An economic analysis. Retrieved from https://globalinitiative.net/wp-content/uploads/2018/09/Terrorism-in-the-Sahel-An-Economic-Analysis.pdf

Websites:

• Africa Mining Vision. (n.d.). Mali mining sector overview. Retrieved from https://www.africa-mining-vision.org/country-profiles/mali/
• B2Gold. (n.d.). Fekola mine. Retrieved from https://www.b2gold.com/operations/fekola/
• IAMGOLD. (n.d.). Essakane Gold Mine. Retrieved from https://www.iamgold.com/operations/essakane-gold-mine
• Kinross. (n.d.). Tasiast Mauritanie S.A. Retrieved from https://www.kinross.com/operations/operation-tasiast-mauritania
• Mining Technology. (2019, October 16). The top five gold mining countries of Africa. Retrieved from https://www.mining-technology.com/features/feature-the-top-five-gold-mining-countries-of-africa/
• Randgold Resources. (n.d.). Loulo-Gounkoto complex. Retrieved from https://www.randgoldresources.com/operations/loulo-gounkoto-complex
• World Bank. (n.d.). Mali mining sector overview. Retrieved from https://www.worldbank.org/en/topic/extractiveindustries/brief/mali-mining-sector-overview