Introduction

Mining activity in Mali is governed by:

• Order No 99-032/P-RM, of August 19, 1999, relating to the country's Mining Code, and as modifi ed by Order No 00-013/P-RM, of February 10, 2000;
• Decree No 99-255/P-RM, of September 15, 1999, which was modifi ed by Order No 00-013/P-RM, of February 10, 2000;
• Decree No 99-256/PM-RM, of September 15, 1999, which states the approval process for prospecting, exploration and exploitation of mineral substances.

The Mines Minister has ultimate responsibility for mining administration, assisted by the DNGM. Mineral deposits are governed by either the regulations that apply to mines or those dedicated to quarries.

Article 6 of the Mining Code ranks minerals and fossil substances under two groups:
Group 1: Precious stones, gemstones and fossils.
Group 2: All other substances which are not governed by the regulations applied to quarries and which do not pertain to Group 1.

Deposits of minerals and fossils substances that are subject to mining regulations are owned separately from the land. These substances are granted to those legal entities that fi le applications with regard to minerals prospecting, exploration or exploitation, in accordance with the principles and rules of the Mining Code.

Minerals that fall under the quarry regulations remain subject to the conditions of soil ownership, in accordance with the Code of Private and State Lands.

Set-up agreement

The authorisation for prospecting comes under a 'Set up' agreement, which determines the rights and obligations of the State and the holder of a mineral right. The model for this agreement is Decree No 99-256/PM-RM of September 1999.

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Acquisition of Mineral Rights

The mineral rights (mining titles) that are granted through the Mining Code are:

• Exploration
• Prospecting
• Small-scale mining, and the Exploitation licence.

The mineral rights identify a land area whose borders are orientated east-west and north-south. In order to prove its technical and fi nancial capabilities, the applicant for a mining title must supply the Mines Administration, with an application form, which incorporates information and documents (the list of which is set within the Decree No 99-255/P-RM of September 1999).

Permits and authorisations

• Prospecting and research activities - by order of the Mines Minister;
• Small-scale mines - by order of the Mines Minister;
• Exploitation activities of large-scale mines - by decree of the head of the government.

Subject to an agreement with the State, the permits and authorisations for minerals substances of a given group can be extended to the whole group. Mining securities are granted to those applicants which have demonstrated their technical and fi nancial capabilities.

Legal qualifications of applicants

Exploration: Any legal entity that has demonstrated its technical and financial capabilities in accordance with the provisions of the Article 55 of Decree No 99-255/PRM of September 15, 1999.

Exploitation: Any legal entity holding an exploration permit, or an authorisation for prospecting, and having demonstrated its technical and fi nancial capabilities for exploitation works, can carry out these activities. During an exploitation phase, the State requires the establishment of a new company under Malian law, with a 10% free-carried share belonging to the State. Based on its own discretionary capacity, the State can purchase up to an additional 10% stake (in cash).

Note that:

• No guarantee required for attribution of mining titles;
• The surface area for prospecting is 10 km2 (Article 75 of the Mining Code), while the minimum and maximum area for an exploration permit is applied according to the mineral substance and region, as established in Order No 01-0677/MMEE-SG of December 3, 2002;
• Mining titles allow for total rights on the single and/or several mineral substances of the same group for which they have been attributed within the limits of the land granted.

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