HomeGoldMali to earn US$240 million from gold this year

Mali to earn US$240 million from gold this year

Hard at work
underground at the
Randgold Yalea mine
in Mali
Bamako, Mali — MININGREVIEW.COM — 01 April 2009 – Mali – one of sub-Saharan Africa’s biggest gold producers – expects to earn the equivalent of more than US$240 million (R2.3 billion) from the precious metal this year, representing a 20% increase over 2008.

Announcing this at a resources conference here, prime minister Modibo Sidibe said: “It’s part of the national budget is estimated at 120 billion CFA francs in 2009.”

Mines minister Mamadou Diarra added that in 2008, gold had contributed 100 billion CFA francs to the budget, accounting for more than 15% of gross domestic product (GDP) and 70% of export earnings.

Reuters reports that revenue is expected to rise despite a decline in the amount of metal produced. Earlier this month, the mines ministry forecast 2009 output would be 46 tonnes, down 13% on last year, as various mines approach the end of their productive lives.

One of the few assets to benefit from the global financial crisis, gold — which many investors see as a safe store of value — hit an 11-month high of more than US$1 000 per ounce in February, and Reuters says analysts expect it to regain this level in the near future.

Firms active in Malian gold include the world’s No.3 gold miner AngloGold Ashanti and Randgold Resources.