This, said B2Gold, would offer the company continued stability of ownership, income tax and customs regimes, and its dispute resolution rights under the Fekola Mining Convention, which would run through 2040.
In addition, the exploitation permits for the Fekola regional projects, namely the Bantako, Menankoto and Bakolobi permits comprising the Anaconda area and the Dandoko permit, as well as approval of the exploitation phase of the Fekola underground project, are to be expedited by the Malian government, it said.
Mali’s ruling junta had previously announced that it would delay the granting of all new mining permits to B2Gold while conducting an audit of its mining sector to apply a new mining code, which it issued in 2023.
This new mining code will apply to the Fekola regional projects, which B2Gold estimates could generate approximately 80,000 to 100,000 ounces of additional gold production per year starting in early 2025. Initial gold production from the Fekola underground project is expected to commence shortly after.
Agreement terms
The agreement comes on the back of continued discussions between the parties over the past year since the 2023 mining code’s introduction. It establishes an overall framework covering the settlement of outstanding matters arising from Mali’s mining audit, income tax and customs audits, as well as clarification and agreement on the application of the new mining code to the Fekola complex.
Key terms of the agreement include the conversion of all retained earnings currently attributable to Mali’s 10% ordinary share interest into a 10% preferred share interest with priority dividends going forward. B2Gold’s 80% interest will remain ordinary share interest. The agreement also includes the settlements of all income tax disputes dating back to 2016 as well as outstanding customs and value-added tax disputes.
B2Gold has also agreed to begin to pay taxes on mine fuel imports that were previously exonerated under the Fekola Mining Convention. To offset these taxes, the State of Mali will offer a 2% reduction on revenue-based taxes and royalties to be applied to the entire Fekola complex, including both the Fekola mine and Fekola regional projects.
The agreement, said B2Gold in its release, provides its Fekola complex a clean slate to move forward under the new economic partnership with the State of Mali.
