B2Gold to extend Fekola after deal with Mali on mining code

B2GOLD is to proceed with extension projects, including an underground mining project, at its Fekola Complex after resolving a dispute with the Mali interim government on the application of a new mining code.The government delayed granting all new mining permits to B2Gold while doing an audit of its mining industry ahead of its 2023 Mining Code. This potentially put the regional expansion of ‘Fekola Regional’ expansion at risk – worth an estimated 80,000 to 100,000 ounces a year in gold production.B2Gold’s flagship Fekola Mine is forecast to produce 580,000 to 610,000 ounces of gold in the year to end-December.The Canadian miner said today all exploration permits for its extension projects would be expedited by the government. Production from Fekola Regional, which includes the Anaconda pit, is expected from early 2025. Underground production is forecast to start in mid-2025, the firm said.In return, B2Gold has agreed that its Fekola Regional operations will be governed by the 2023 Mining Code to 2040. Fekola Mine will remain subject to the old Mining Code, passed in 2012 which includes stability clauses and dispute resolution under the Fekola Mining Convention.The State will continue to hold 20% of the Fekola Complex with B2Gold owning the balance. The new mining code calls for 30% government ownership in the mines with the balance to have been bought by the State. That no longer applies.As crucially, the agreement for the Fekola Complex as a whole will see all retained earnings that are currently attributable to the state’s 10% ‘ordinary share interest’ to a 10% ‘preferred share interest’ which includes priority dividends while settling all existing tax assessments, customs disputes and other assessments outstanding dating from 2016.Mali has also agreed to settling outstanding VAT claims submitted by B2Gold.As part of the overall agreement, B2Gold will now pay taxes on fuel imports to the Fekola Mine previously not applicable under the mine’s mining convention. To offset these taxes, the State has agreed to a 2% reduction in revenue based taxes and royalties applied to the whole Fekola Complex, including Fekola Regional.“The 2% reduction in revenue-based taxes and royalties is expected to offset substantially all of the cost of Fekola Mine fuel taxes going forward,” said B2Gold.Certain new tax-based royalties will apply but as these changes were applied to an impairment on Fekola Mine during the second quarter of this year, no further write-downs of assets in Mali were expected, the company said.“The 2024 exploration program is currently underway in Mali with a total of $10m budgeted, with an ongoing focus on discovery of additional high-grade mineralisation across the Fekola Complex to supplement feed to the Fekola mill,” the company said. “Significant exploration potential remains across the Fekola Complex to further extend the mine life,” it added.The post B2Gold to extend Fekola after deal with Mali on mining code appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.comWeiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com