Malian Government Announce Takeover of State Resources from Foreigners
The Malian government has asserted control over the country’s key natural resources, including gold, lithium, and oil.
The move, framed by officials as a necessary step towards economic sovereignty, is being viewed with significant concern by France and other international partners who previously held substantial economic and political influence in the West African nation.
The decree, signed by Interim President Assimi Goïta late yesterday, mandates that all exploration permits and exploitation licenses for natural resources be reviewed and renegotiated under new terms dictated by the Malian state.
It also establishes a new national company, Société Malienne des Ressources Naturelles (SOMIRENA), which will hold a controlling stake in all future resource extraction projects.
Existing contracts will be subject to scrutiny, with potential for revision or cancellation if deemed unfavourable to Mali.
“For too long, our nation has been deprived of the full benefits of its own wealth,” declared Mines Minister Modibo Keïta at a press conference in Bamako. “This is not about nationalizing resources, but about ensuring a fair return for the Malian people. We will prioritize investments in infrastructure, education, and healthcare, funded by the responsible exploitation of our natural wealth”
The announcement has been met with strong reactions from France, which has historically been a key economic partner and former colonial power in Mali.
The French government expressed “deep concern” over the unilateral nature of the decision and its potential impact on ongoing investments.
“We are deeply worried by this decision which casts a shadow over the future of French and other international investments in the Malian mining sector. It goes against the principles of a stable and predictable investment climate,” stated a spokesperson for the French Ministry for Europe and Foreign Affairs. “We urge the Malian authorities to engage in constructive dialogue and to respect existing contractual obligations.”
Several French companies, including Oragui and Bureau de Recherches Géologiques et Minières (BRGM), have significant operations in Mali’s mining sector. Industry analysts predict that the new regulations could lead to protracted legal disputes and a significant decline in foreign investment.
Shares in companies with Malian exposure experienced a dip in early trading today.
The move comes amidst a broader cooling of relations between Mali and its traditional Western partners, particularly France.
In recent years, Mali has increasingly turned towards Russia, specifically the Wagner Group, a Russian paramilitary organization, for security assistance. France completed its military withdrawal from Mali in August 2022, following years of involvement in counter-terrorism operations.
Analysts suggest that the Malian government’s assertion of control over its resources is, in part, a consequence of this shifting geopolitical landscape. “Mali is signaling its willingness to pursue a more independent path, less reliant on traditional Western donors and investors,” said Dr. Aminata Traoré, a political analyst specializing in the Sahel region. “The Wagner Group’s presence provides a security umbrella that allows the Malian government to take bolder steps in asserting its sovereignty.”
The United States and other European nations have also voiced their concerns, but their responses have been more measured than France’s. There are fears that the move could destabilize the region further, potentially impacting neighboring countries that rely on Malian resources or trade routes.
The Economic Community of West African States (ECOWAS) has called for calm and urged the Malian government to engage in dialogue with its partners. However, it remains to be seen whether ECOWAS will take concrete action.
