Higher gold prices lift Mali’s gold mining revenue 13% in 2020

State revenue from gold mining companies in Mali rose 13% in 2020 year-on-year to US$850 million, as a result of the gold price reaching record highs during the height of the COVID-19 pandemic.

Strong demand for the ‘safe haven’ metal during the crisis pushed the spot gold price over the $2,000 per ounce mark last August, with Mali a key beneficiary of the price rise by account of the gold sector providing almost 10% of its GDP.

“The increase [in revenue] is explained by the slight increase in production but above all by the rise in the price of gold,” said Mali’s Planning and Statistics Unit director Mamadou Sidibe.

Gold output in Mali increased marginally to 71.2 tonnes in 2020, compared with 71.1 tonnes in 2019. The West African nation’s industrial gold sector is comprised of 13 multinational mining firms, including Barrick Gold, Resolute Mining, B2GOLD, AngloGold Ashanti and Endeavour Mining.

However, Mali’s political situation has become further unstable after a second military coup in nine months was carried out the week before last. On Friday, the World Bank said it had temporarily paused payments to operations in Mali following the overthrow of the transitional president.