B2Gold strikes deal with Mali on Fekola

B2Gold is ready to forge ahead with the underground expansion at its Fekola mine in Mali, after a permitting dispute.

The Malian government, which took power in a coup in 2021, stalled the granting of new permits when it launched a new mining code in 2023.

But B2Gold said that exploration permits for its extension projects will now be expedited by the government, after an agreement was reached on the application of the new mining code. 

Production from Fekola expansion, which includes the Anaconda pit, is expected from early 2025, with underground production expected to start in mid-2025. The expansion is expected to add 80,000-100,000oz a year in gold production.

Fekola, which is B2Gold's flagship mine, is guided to produce 580,000-610,000oz of gold in 2024.

Tax deal

The project expansion will be governed by the new mining code, while the existing Fekola Complex will remain subject to the old 2012 mining code. 

B2Gold said the deal "provides the Fekola Complex a clean slate to move forward under the new economic partnership with the State of Mali". 

Mali will continue to hold a 20% stake of the Fekola Complex, less than the 30% required by the new code. 

The agreement will also see B2Gold will pay taxes on fuel imports to the Fekola Mine. These taxes will be offset by a 2% reduction in revenue based taxes and royalties applied to the whole Fekola Complex, including Fekola Regional.