Initial situation
Mining contributes significantly to Mali's economy. Gold is the most important export commodity: 70 percent of export earnings and almost 30 percent of taxes are generated by gold. To better exploit this potential, the government has undertaken major reforms, including the revision of the Mining Act. The revenue should be increased and a lasting contribution to socially equitable economic growth should be made. However, efforts to date have not been enough to meet the many challenges. This concerns deficits in the efficient, effective, transparent and participatory structuring of the area. Above all, civil society is under-represented. Monitoring and control bodies are also weak.
Objective
The regulations of the African Mining Vision for Transparency and Control have been implemented. The conditions for using the natural resources of Mali for the long-term development of the country are improved
Method
So far, the project has strengthened the participation of the extractive sector in the sustainable development of Mali. In particular, government revenues have been increased through the establishment of a mining cadastral management system. The training of key actors in the mining and mining sector has improved the understanding of administrative structures. Civil Society also participated in various policy reform processes as part of the Extractive Industries Transparency Initiative (ITIE). The project has trained decision-makers in five communities, thereby strengthening their knowledge and skills. So they could perform public accountability.
These actions aim to consolidate and pursue by the project in order to professionalize the resource industry. The government should increase taxation, as well as monitoring and control structures. The project continues to strengthen the role of civil society in reform processes. A database should cover developments in the area of raw material. In addition, the project aims to increase local value creation and improve accounting. The number of tax-arbitration proceedings negotiated in court is to be reduced from 80 to 25 percent. The project is training at least 20 tax inspectors. Additionally, the project supports the initiative ITIE in the creation of a communication strategy.
Effects
The project has reduced the proportion of non-levied taxes and other duties from 75 to 25 percent.
A publicly accessible information system now makes the awarding of mining licenses in Mali transparent.
The processing time has dropped from eleven months to a maximum of three months. As a result, tax revenues increased from € 7.6 million in 2016 to € 38 million in 2018.
Eleven communities have designed economic, social and cultural development plans. More than 5,000 citizens have participated in these processes.
The confidence of the population in the government has improved due to the more transparent work.
In cooperation with partner organizations, the project carried out a study on mining activities in the Kayes region. With these results, the participants informed the public in workshops about the effects of mining.
The Ministry of Mining, in cooperation with the private sector and civil society, has prepared a strategy document on commodity policy. The implementation is intended to permanently improve economic growth and thereby promote stability and peace in Mali.