The Value of Gold and the Challenges of Gold Mining In Mali

The Value of Gold and the Challenges Gold Mining Brings In Mali

Gold mining is the main economic activity in Mali since the 1990s. Its contribution to Mali's economy can only be rivalled by its cotton industry. The rapid growth of the gold mining industry in Mali has boosted the country's development growth. Furthermore, the increase in the international prices of gold has boosted the country's revenues. Gold mining is an economic activity that would bear high potential for development in the country by boosting other sectors of the economy. By boosting the country state revenue, gold mining has the capacity to improve the countries expenditure on infrastructure, education, and health (Smith et al., 2017). Also, the establishment of various gold mining towns has led to rapid urbanization in some areas despite the environmental impact of gold mining on local communities. The research paper will evaluate the challenges and value of gold mining to Mali. 

Regardless of the immense contribution of gold mining to Mali, the country still remains relatively poor. In terms of human development, it was ranked 175 out of 177 countries that took part in the study. Although it is among the main gold producers in the African continent, its per capita income is about $400 while the average per capita income of sub-Saharan countries is about $750. Moreover, the country has a low human rights ranking due to the abuse of employees, poor working conditions, and child labour. Their life expectancy is about 48 years, about 33% of their population is underfed, the literacy level is about 30%, and about 50% of the country lacks access to clean drinking water (Kevane, 2015). Therefore, regardless of the value of gold, gold mining has had little impact on the economic and social development of the country. The country should evaluate its mining policies to reap favourably from the valuable resource. 

Challenges Facing Mali

Regardless of the abundance of natural resources in the country such as gold, Mali is one of the poorest countries globally. About half of their 16 million populations live in poverty. More than 20% of their children below 5 years are underweight according to reports released by the World Health Organization (WHO). The literacy level is below 30% and it might have the worst literacy level globally. The female literacy level is worse than the average national literacy level. Most of the children drop out while the children remaining in school receive poor quality education. Most of the children learn under trees while some do their homework on dusty sands because their parents cannot afford pencils and books. Furthermore, the government policy regarding education is non-beneficial. 

The prevalence rate of HIV/AIDS in the country is 1% and perhaps the lowest in the continent. Although the country receives about 4400 deaths from HIV annually, other diseases threaten the lives of most people in the country such as hepatitis A, malaria, typhoid fever, protozoan and bacterial diarrhoea, and schistosomiasis. Moreover, there has been a mounting pressure for land ownership in the country. Due to the population concentration in the south, there is land pressure and the land prices are increasing significantly. Tenure policy and land titles used to be reserved from the wealthy citizens and foreigners but most people are now seeking to own lands (Ali et al., 2017). A significant portion of the population is at risk of losing their land for economic activities such as gold mining. Also, there is an increasing number of landless people, widening inequality, and poverty. 

Since the northern part is mainly reserved for herders while the southern part carries pout various agricultural activities, there have been increased tensions between herders and farmers. The herder-farmer conflicts have become more common and murderous some conflicts have led to the deaths of about thirty people. Herds of hungry cattle often damage filed while some farmers decide to plough on routes that were traditionally used by herders. Although herders and farmers have often cooperated, the unity is quickly being eroded due to land pressure and ownership issues. Former grazing lands are being turned into farms and more land has been allocated to mining leaving herders with serious problems regarding access to pasture and water (Kevane, 2015). Regardless of the high value of gold in the global market, the natural resource has limited contribution to the social and economic problems facing the country. Unless the local government implements better infrastructure and policies to harness the natural resource potential in the country, the situation may get worse. 

Infrastructure in Mali

According to regional standards, Mali has poor infrastructure. The country is landlocked, has no direct access to a seaport, and the country is largely semi-arid. It is one of the countries with the biggest land area in Africa. Most of the country's population is concentrated in the south although the country has a low population density. The levels of wealth and poverty vary greatly because of the huge income gap in the country. The southern parts of the country are dominated by Niger and Senegal River Deltas that have remained largely undeveloped (Smith et al., 2017). There are major differences between the southern and northern parts of the country. The southern part of the country has a larger population density and cities because of the distribution of natural resources. Most economic activities take part in the south, especially in mining and agriculture.

By comparison, the northern parts of Mali have a low population and are mainly arid and most of the communities in the north are nomads. Nevertheless, the northern parts have huge infrastructural and agricultural potential that are not fully exploited. The distributions of Mali’s major infrastructure are influenced by population distribution. Therefore, the density of ICT, transport, and power infrastructure is mainly in the south in comparison to the north. Mali possesses one of the most unevenly distributed infrastructure networks in Africa. With the exception of the roads connecting the major mining areas in the North, most of the country’s north is a desert which is high inaccessible (Ali et al., 2017). The country is highly dependent on regional infrastructure and regional corridors for water and transport resource development. The country mainly depends on three major transport corridors to link it to the sea: Abidjan-Ferkesessedougou-Bamako, Dakar-Bamako, and Tema-Ouagadougou-Bamako links. 

However, due to the security regions in Ivory Coast, the country shifted most of the transit products to other corridors and infrastructure within the region. The rail network in the country is mainly disconnected because the country's railways use different gauges. Therefore, it is quite challenging to implement rail interconnection. The failure of rail connection has increased the pressure on road transport. Although the country is part of the West African Power Pool (WAPP), Mali’s transmission network has not been connected to the regional network (Smith et al., 2017). Also, the country developed a widespread fibre-optic network connected to Ivory Coast and Senegal. It also shares riparian rights with most West African states. The country has made major infrastructural developments such as refurbishment of Bamako airport, increase in mobile penetration, rural electrification programs, improved use and efficiency of railways, increased focus on regional corridors, and improved sources of water and sanitation (Kevane, 2015). However, the country still faces insecurity, integration of ICT with its neighbours, addressing the rising demand for electricity, different rail gauges, building quality roads in the north, and a huge urban-rural gap regarding basic commodities such as proper housing, electricity, clean water, education, and infrastructure. 

Gold Mining Regions

Mali has become a significant region for gold exploration and mining. The recent surge in gold production in the country has made Mali an attractive investment destination. Only South Africa and Ghana produce more gold than Mali in Africa. Regardless of the recent increase in gold production in the country; they still have immense potential for growth because most of the natural resource potential has not been explored. It is highly likely that there are immense unexplored gold deposits in the country. On the other hand, the gold mining industry has few stakeholders (Ali et al., 2017). Although the main producers are limited, there are large numbers of small artisanal miners who depend on simple equipment such as basic placer mining equipment and metal detectors to mine gold in Mali. 

History of Gold Mining in Mali

The history of gold mining in the country dates back about seven centuries ago when Emperor Moussa travelled to Mecca without about eight tons of gold and made it known that his empire was one of the main producers of gold globally. Although the existence of gold and other natural resources in the country was known for many centuries, gold mining was ignored for many decades (Kevane, 2015). The main reason why gold mining was ignored in the area is because of the rampant violence and economic instability of the region. Mining in the region is quite challenging. It has one of the lowest life expectancies globally. Furthermore, security and infrastructure are limited. For foreigners to invest in gold exploration and mining in the country remains a huge risk. Regardless of the fact that the existence of god in Mali was known for many centuries, commercial exploration and mining of gold only began in 1984. 

Gold Mines in Mali

There are many areas of the country that remain largely unexplored due to the harsh climatic region and the huge capital investment required to invest in the harsh conditions. Mali has three key gold mines. Sadiola and Morila produce about 80% of the country's total production. Loula mine was opened in 2005 and has a potential of producing over 250000 ounces annually (Ali et al., 2017). The nation has immense potential although they have not fully explored their gold mining potential. The country has over 133 gold-rich regions but only six have been mapped (Kevane, 2015). It is highly likely that there are other areas that are gold rich. Gold exploration in the country is mainly focused in two regions over the past three decades. The two regions are Tabakoto-Baroya and Keneiba Valley. Tabakoto-Baroya is found on the southeastern part of the capital city, Bamako while Keneiba valley is found on the country's border with Senegal.

There are various gold mining areas bin the Keneiba valley existing on both sides of the Senegal Mali border. The main gold mining areas in the Keneiba valley are the Sadiola mines and Yatela mines. Most of the gold mines are jointly owned by the Mali government and other private foreign companies. Open pit mining was completed in the three main mining regions. Most of the mines are currently focusing on the underground low-grade stockpiles. However, Sadiola and Morila mines are open pit mines. Yatela is also an open pit mine and was officially opened by the government in 2001 (Smith et al., 2017). Most of the key gold mining areas in the country are owned by AngloGold Ashanti, the government of Mali, and IamGold.

Artisanal Gold Miners

Although artisanal gold miners have minimal impact on the total gold production in the country, it acts as an essential source of income for many individuals living in the gold-rich regions. Such sources of gold are the main source of income for some poor families. Despite the economic benefits of artisanal gold mining, the process has led to serious environmental challenges. There are thousands along the Niger River who use placer mining techniques to wash gold particles from soil and gravel along the river banks. The main prospectors in the area utilize large gourd shells that are similar to gold pans to separate gold particles from gravel. However, artisanal mining causes various conflicts in Mali. The miners usually divert river water from the agricultural rich regions and divert it into the mines. Also, using mercury for fine gold extraction has serious environmental problems (Ali et al., 2017). Although the government banned artisanal mining in 2014 during particular months of the year, it still causes major conflicts because it is the main source of income for many poor households. 

Boko Haram in Mali

From tourist hotels in the Sinai to the cafes in Paris, and from the teeming markets in Nigeria to the glitzy hotels in Mali, Islamic terrorists have made it clear that neither locals nor foreigners are safe. Boko Haram has been carrying out attacks in the country sweeping through rooms and it has left thousands of people dead. The terrorist group has been targeting French antiterrorism operations in the regions in many regions. After the group pledged allegiance to ISIS, the group has been essential ISIS plans in West Africa (Smith et al., 2017). ISIS has been carrying out attacks in Paris. Due to the poverty levels in Mali, ISIS was able to brainwash many young people into the group. Other than Boko Haram, there are other terrorist groups in the country.

Al-Qaida also has affiliate groups in North Africa who have caused security concerns in the region. Al Qaida in North Africa is known as Al Murabitoun and it consists of Arabs and Tuaregs. In 2013, the group attacked a gas facility in Algeria where they took over 800 hostages and killed 39 foreigners including six Britons and three Americans (Smith et al., 2017). Most of the terrorist groups target French and other foreign interests in the country. Moreover, the groups have continually urged their supporters to attack French interests in the entire West African region. The attacks have shown that there is a growing anti-Western radicalism in northern and western Africa. The high poverty rate in Mali is contributing to the infiltration of Islamic terrorists in the region. Many Islamist groups in the northern parts of the country are infiltrating the southern parts of the country and launching attacks. Other than the increasing anti-Western radicalism in the country, it also indicates that ISIS has been sending many envoys into western Africa to attract more militants into the group after the Nigerian Boko Haram was recruited by ISIS (Kevane, 2015). 

Regardless of the global fight against terrorism, Al Qaida has maintained a strong presence in Somali, Mali, and other regions. According to the recent attacks by terrorist groups, it shows that they do not need complex weapons or planning to cause maximum damage. Most of the attacks in Mali and Paris involved a group of people with explosives and automatic weapons showing a willingness to die, targeting vulnerable populations, and wearing lightly guarded civilian clothes (Smith et al., 2017). The continued terrorist attacks in the country, especially in the northern region, have made it quite challenging to explore and mine gold. Additionally, the group often destroys the mining equipment. Ultimately, the security risks make it quite difficult for foreigners to work in some regions.

Western nations have shown a lot of interest in some African countries with homegrown terrorists such as Mali, Kenya, Somalia, and Nigeria. Such countries often face heightened risks because of intelligence failures, high corruption levels in security agencies and police, and improper coordination among security agencies. One of the key threats that Boko Haram in Mali poses to the west and other African nations is that they may focus on attacking western interests locally and internationally. Initially, Boko Haram focused on attacking the military but they shifted their attention to civilians including women and children. Although Boko Haram in Mali has not shown signs of developing into a direct threat to the US and its allies, the possibility should not be ignored (Traore, 2016). The terrorist group has quickly evolved into an organized group that has short and long-term goals.

The main ideological differences between ISIS loyalists and Al Qaida affiliates is that al-Qaida groups request their victims to prove they are Muslims by professing the shahada , the profession of Islamic belief or reciting particular Quran verses before the victims are released. On the other hand, ISIS believes that anyone who does not embrace violent versions of Islam including Muslims as traitors who must be killed. ISIS poses direct threats to Europe and the US because of their continued war against the group in Syria and Iraq. Although the US and its allies have managed to neutralize the impact of al-Qaida and ISIS, the groups still have the potential to launch major attacks on western nations (Stamp, 2015). There has been competition between ISIS and Al-Qaida in Mali and other western African nations for recruits and finance. Boko Haram has a goal of creating a common absolute religion in Mali and other West Africa nations. In 2013, Al-Qaida linked militias had taken over more than 50% of Mali until France intervened because the group would have had direct threats to the US and Europe (Stamp, 2015). 

Strategies to Preserve the Mines

Mali’s gold exports have been declining over the past three years. Moreover, the new discoveries are insufficient to make up for the loss of its main mines where production is either winding down or is dead. The fate of the Sadiola mine hangs in the balance. Although Sadiola mine is one of the most complex and technologically efficient mines, it requires investments of about $380 million for it to be productive over the next decade. Investing in the mine will allow the country to access over 3.4 million ounces in reserve. Regardless of the importance of the Sadiola mine to the country, talks to extend its productive life seems to have stalled (Traore, 2016). The survival of Sadiola mine is critical for the country to retain its status as one of the key gold producers globally. 

Other than maintaining its reputation, Sadiola mine is a crucial source of state revenues and employment. The success of the Sadiola mine would be a litmus test for the new government in the July 29th, 2018 elections. Currently, the country is highly dependent on foreign aid while struggling to create an attractive investment climate. It appears the investment climate in the country has only been effective in theory but implementing it practically has been challenging. Although the country has been moving in the right direction, its resolve to preserve the Sadiola mine is still questionable. Sadiola mine is owned by the government of Mali with 18 percent, AngloGold Ashanti with 41 percent, and IAMGOLD at 41 percent (Stamp, 2015). The mine is located near the country's border with Senegal and it covers 302 square kilometres.

Figure 1 showing the Sadiola and Yatela mines.

The existing mine at Sadiola was developed to process oxides or soft rocks but the soft ore is currently running out. However, the mine may still be productive because of the sulphides and massive hard rock deposits beneath the depleted oxides. The two main shareholders, IAMGOLD and AngloGold Ashanti are determined to invest in a new plant that would allow hard rock processing. Since Sadiola mine was opened in 1997, it has had positive social and economic impact on the country. By early 1998, gold mining had become the main source of revenue for the government. In 1999, it became Mali’s top export and by 2001, it was the third largest gold producer in Africa (Traore, 2016). Without the impact of Sadiola mine, Mali would not have earned its reputation as a major gold producer. The other key mines are Yatela and Morila. 

Morila mine is also a joint venture by the three main players: Mali government, AngloGold Ashanti, and Randgold Resources. The mine has produced over 200 tons of gold since it was opened in 2000. However, it has been scheduled to close down in 2019. Yatela is also a joint venture between three main players: Mali government, IAMGOLD, and AngloGold Ashanti. Although Yatela mine had been scheduled to close down in 2007, intensive exploration efforts ensured the mine has extended its productive life by another decade (Stamp, 2015). Due to the opening up of new commercially viable deposits in Yatela, it is highly likely that the mine will be productive in the long term. However, gold mining in Yatela is more expensive than Sadiola that produces gold at lower costs. If the country is unable to invest in Sadiola “hard rock” gold, it would be a major loss. 

Importance of Preserve Sadiola Mine

The annual gold production is 46.5 tons although, in 2016, the production rose to 46.9 tons. However, the total gold exports reduced from 70 tons to 67 tons in 2016. As Yatela plans to close down while Morila is winding down, Sadiola mine may be the country's lifeline in the long term. Maintaining gold production in the long term will be an uphill task. The country's revenues from gold mining have only been rising by a mere one percent. There are no new mines planned for production until late 2018. Gold production accounts for about 30% of the total government revenue and the input from Sadiola is critical to the long-term economic sustainability of Mali. According to estimates, Sadiola mine may contain 56000 tons of ore with about 34 million ounces of gold (Stamp, 2015). The estimates are probable and proven. Furthermore, they have shown economic viability. Although the oxides are almost being depleted, the hard rock is still gold rich. 

Nevertheless, getting beyond the Mali political atmosphere threatens the long-term sustainability of the Sadiola mine. Due to the depletion of the soft rocks, gold production in Sadiola mine decreased from 600000 in 2000 to about 200000 in 2017. However, gold production in the mine could extend for another decade if the main stakeholders make a $380 million investment to process the hard rock. If the investment is implemented, government revenues will increase and they will also create thousands of jobs. Currently, Sadiola mine employs about 1000 people but if the $380 million investment is given a green light, it would improve the employment opportunities for millions of poor young people in the country (Stamp, 2015). Preserving the Sadiola mine and opening new mines is critical to Mali. Over 50% of the country’s population is below 35 years of age. There is a direct link between terrorism or crime and unemployment. Reducing the unemployment rate would improve the security situation in the country. 

Sadiola expansion project will involve using the current infrastructure and build new infrastructure. It will involve connecting the mine to the country's power grid and also facilitate electricity distribution to surrounding villages. Because 2018 is the country's election year, the investment climate and fate of the expansion project hangs in a balance. One of the key investors, IAMGOLD, is keenly watching the political climate to protect its interest. IAMGOLD is a Canadian firm operating mines in Canada, Burkina Faso, Suriname, and Canada, and various exploration projects in Nicaragua, Senegal, Canada, Brazil, and Mali (Stamp, 2015). For Sadiola mine to continue being productive, the capital and energy intensive expansion program should access the hard rock sulphides. It requires the right economics and a world-class miner. They should focus on optimizing gold production. However, the government is mainly focused on the July 29th elections. 

Child Labor in Mali

In the poor rural areas of Mali, children often work in the mines to make a living. Small-scale mining or artisanal mining is usually labour intensive, is informal, and uses low technology methods. About 12% of the global gold production is attributed to artisanal mining. Although mining is one of the most hazardous industries, child labour has become quite common in Mali. About 40000 children are employed in Mali's artisanal sector. Some of the children are as young as six years (Stamp, 2015). The children experience some of the most extreme forms of child labour that involves toxic chemicals, injury, or even death. They are often required to dig shafts, transport and crush the gold ore, and then pan it for gold particles. Some children have sustained injuries in their backs, heads, arms and necks from repetitive motion and lifting heavy weights. They also risk spinal injury and health risks from sharp tools and falling rocks. Additionally, when they work in unstable mines, the mines may collapse.

Child miners may also be exposed to dangerous materials such as mercury. Mercury is highly toxic but is used in burning the amalgam to separate gold particles from other extracts. Mercury has adverse effects on the nervous system and has a negative health impact on children. Child miners risk mercury poisoning that may cause various neurological conditions such as concentration problems, tremors, memory loss, coordination problems, headaches, and vision impairment (Sanoh & Coulibaly, 2015). Although the impact of mercury may not be immediately noticeable, the effects are observed in the long term. It may be difficult to identify the impact of mercury on children without medical experts. Most child and adult artisanal miners are unaware of the adverse health risks associated with using mercury. 

Figure 2 showing children working in an artisanal mine in Mali.

Most of the child miners work and live with their parents who decide to send them to the mines to boost the family income. Majority of their parents are also artisanal miners who are paid peanuts for the gold they mine while the local government and traders make a considerable profit from the artisanal mines. In other situations, the child miners live with strangers, relatives, or acquaintances who often exploit them. Some children are sexually exploited by other miners or other people they live with especially if they were strangers. A large majority of child labourers are migrants from Mali or immigrants from neighbouring countries such as Guinea and Burkina Faso. Some children miners may have been victims of human trafficking. Young girls working in the mines may be victims of sexual abuse and exploitation (Traore, 2016). 

Most children working in the artisanal mines have never gone to school and they miss out on essential skills that would have made them productive and skilful adults. The Malian government has failed to stop child labour and human rights abuse of the miners. Poor quality education, lack of school fees, and poor infrastructure have hindered many guardians and parents in the mining regions from taking their children to school. Furthermore, schools often fail to enrol and integrate immigrant children working in the mines. Even though some child miners attend school, they struggle to cope with school because they work during the weekends, holidays, and their spare time. According to the Human Rights Watch, international gold mining companies and the Malian government have failed to address the problem of child labourers in the supply chain (Chuhan-Pole et al., 2017). Most of the gold originating from artisanal mines is bought by small traders and middlemen with trading houses in Bamako. After acquiring sizeable quantities, the gold is then exported to Belgium, Switzerland, and the United Arab Emirates. 

Role of Malian Government in Stopping Child labour

According to international law, the Malian government has an obligation to protect children from abuse, child labour, trafficking, and economic exploitation. It is also obligated to ensure compulsory and free primary education for all children. The Malian government should take appropriate measures to avoid diseases and occupational hazards while reducing miners’ exposure to harmful materials. International partners should assist third world countries such as Mali to implement their obligations according to international law. Organizations also have a responsibility to mitigate, identify, and prevent human rights practices through diligent measures and policies. Regardless of the high rate of child labour in the country, the Malian government is taking appropriate measures to ensure children's rights. They are also encouraging children to enrol in school. However, the national enrolment rate is quite low at 60% (Masurel et al., 2016). The government is also regulating the use of mercury in the mines. 

However, the Malian government has not fully dedicated itself to stop child labour. Most of the agencies tasked with stopping child labour are often understaffed, isolated, and lack proper support from the government. Moreover, their health policy lacks an effective strategy for preventing or treating mercury poisoning and other health hazards associated with mining. Child miners especially those in artisanal mines do not benefit from the education policy and the policy has not been modified to understand and adapt with their needs. The Malian mining policy focuses on industrial mining and international companies (Sanoh & Coulibaly, 2015). Therefore, they have largely neglected child labour in the artisanal mines. Traditional authorities and local governments usually benefit from artisanal mines. Government policies in crucial areas such as artisanal mining, health, and education are often undermined by local government officials. Ultimately, the government’s effort to put an end to child labour becomes ineffective. 

Role of International Community in Stopping Child Labor

Civil society groups, donors, and the United Nations’ agencies have taken up essential initiatives regarding child labour, artisanal mining, and education in Mali. For instance, the International Labor Organization (ILO) has helped many children to escape and leave mining work and join the school. However, such initiatives have had limited impact because of inadequate political support and minimal funding. The European Commission and the US have recently reduced funding for various international child labour interventions and programs in Mali. On the other hand, the ILO failed to achieve its 2005 objective to ensure ”Minors out of Mining." The objective involved about 15 governments and they were committed to ending child labour in their mining industries by 2015 (Chuhan-Pole et al., 2017). 

Hazardous child labour can only be eliminated if all stakeholders prioritize ending child labour, offer financial support, and full political support aimed at ending child labour. The main stakeholders include companies, local and central government, gold traders, civil society, artisanal miners, civil society, donors, and UN agencies. There is an urgent need for concrete and feasible solutions that will eliminate child labour. The first step should involve the Malian government putting an end to the use of mercury in artisanal mines (Sanoh & Coulibaly, 2015). The government should also carry out community programs to increase awareness of the dangers of mercury poisoning and child labour. Moreover, there should be regular labour inspections to ensure the miners comply with regulations.

All the relevant stakeholders in the gold mining industry should unite and support the government's plans to eliminate child labour. Additionally, the government should establish social protection schemes for vulnerable minors, improve access to education, implement state support for all community schools, and abolish school fees in mining areas. The international and local stakeholders should offer support for artisanal and build their capacity to create cooperatives and alternative technologies that do not use mercury in mining. The government should also be keen to address various health concerns related to artisanal mining. UN agencies and international donors should support the Malian government in their efforts to end hazardous child labour in the country through technical, political, and financial expertise (Chuhan-Pole et al., 2017). However, there should be a roundtable discussion among the main stakeholders such as businesses, government, experts, civil society, and UN to create momentum towards eradicating child labour.

International and Malian companies must recognize their responsibilities towards eradicating child labour among other human rights issues. Also, businesses should implement due diligence processes while engaging the government and suppliers in meaningful dialogue. They should ensure that they end child labour within specific timelines, for instance, two years. Moreover, they should support programs that will eradicate child labour such as health and educational programs in artisanal mining areas. At the regional, regional bodies such as ECOWAS (Economic Community of West African States) should that their mining code prohibits child labour and that members adhere to the rules (Traore, 2016). 

Corruption in Mali

There is a high risk for corruption for companies working in Mali. The most common obstacles for investors include corruption in public procurement services, petty corruptions, and corruption when settling commercial disputes. It is one of the poorest nations globally and is recovering from economic, political, and security issues affecting the country especially in the north. There are various anti-corruption laws such as the penal code but the laws are ineffective especially in the public sector. Punishment for corruption includes fines or 20 years imprisonment but the policies are poorly enforced (Sanoh & Coulibaly, 2015). 

Judicial System

There are high risks of corruption in their courts, especially through peddling and bribery. There are many organizations that insist that bribes or irregular payments were made to obtain particularly favourable decisions. The judicial system lacks professional training and resources. Also, it operates inefficiently and slowly (Chuhan-Pole et al., 2017). In some cases, judges may be absent for months in their assigned areas. The legal framework in Mali is inadequate when settling disputes and challenging regulations. Although the constitution supports an independent judiciary, the judicial system is influenced by the executive. In most areas, conflicts are handled by solved by traditional authorities such as elders or chiefs. Moreover, conflict resolution may take many years and enforcing a contract may take up to two years.

Police

Police corruption is quite prevalent in Mali especially with extortion in most checkpoints. Also, petty corruption among police officers is quite common. Residents, drivers, and businesspeople argue that government security forces and armed groups often make extortion demands. Furthermore, they rarely provide receipts and failure to comply with the extortion demands results to delays, beating, and detention. Most police checkpoints request amounts ranging between eight and sixteen dollars. Other than corruption, insecurity and lawlessness are major obstacles in the country (Masurel et al., 2016). Government security forces and armed groups usually act with impunity. Also, mechanisms to punish corrupt police officers are ineffective. There are additional business costs due to violence and crime. More than 50% of the Malian population believes the government security forces are corrupt. 

Public Service

Corruption is endemic when acquiring public utilities, licenses, and permits. Most businesses are required to make irregular payments to acquire some public services. Over 18% of the Malian population has been forced to provide favours or bribes to acquire particular public services annually. Although starting a business takes about 9 days, the process is quite costly (Chuhan-Pole et al., 2017). 

Land Administration

In the land administration department, corruption is quite common. Although property rights are well defined in the constitution, bureaucracy and corruption in Mali have made the principles quite difficult to implement. There are various corruption practices that raise transaction costs, especially when acquiring legal titles. There are frequent clashes between sedentary and nomad populations because of corruption in land administration (Sanoh & Coulibaly, 2015). Although registering properties is quite easy, it is more costly than other countries in the region. Also, the real estate sector in the country is often attributed to money laundering and investors should be aware. 

Tax Administration

Mali’s tax administration system is characterized by corruption because most businesses report bribes regarding annual tax payments. The total tax rate is about 48% but some local tax offices may lower the tax rates in exchange for gifts and bribes (Masurel et al., 2016). Over 70% of surveyed Malians perceive that local tax officials are corrupt. 

Customs Administration

There are high risks of corruption when investors interact with custom’s authorities. Irregular payments are common when exporting and importing goods. Fraud is endemic in the customs authorities. Political instability and porous borders promote illicit trade and networks of collusion and corruption between security apparatus, smugglers, and customs officials (Sanoh & Coulibaly, 2015). High-value illicit commodities are protected by smugglers and facilitated is complicity, violence, and corruption among high-level state officials.

Public Procurement

The public procurement sector is characterized by bribes and irregular payments made in connection with awarding licenses and public contracts. Most businesses operating in Mal there is favouritism when awarding public contracts and that government officials usually divert public funds. The Auditor General often makes revelations regarding large-scale corruption but the government rarely takes action. For instance, in 2011, donor funds allocated for Malaria, AIDS, and Tuberculosis treatment were embezzled by the Ministry of Health (Traore, 2016). 

Legislation

The legal framework regarding corruption is ineffective and the enforcement is terrible. Although the Penal Code criminalizes passive and active corruption among domestic public officials, bribing foreign public officials is not illegal (Masurel et al., 2016). Embezzlement is not illegal in the private sector but it is illegal in the public sector. 

Conclusion

The research paper evaluates the challenges and value of gold mining to Mali. Although the existence of gold and other natural resources in the country was known for many centuries, gold mining was ignored for many decades. The main reason why gold mining was ignored in the area is because of the rampant violence and economic instability of the region. Furthermore, corruption, insecurity, and political instability have made it challenging for investors in the country. Moreover, the gold mining industry in Mali employs over 40000 regardless of the harsh conditions (Sanoh & Coulibaly, 2015). The children experience some of the most extreme forms of child labour that involves toxic chemicals, injury, or even death. The Malian government is working with local and international agencies to eradicate child labour and corruption.

Gold mining has the potential to improve the social and economic wellbeing of Mali. The benefits of gold mining are attributed to increased government revenue that is then invested in major sectors of the economy such as health and education (Chuhan-Pole et al., 2017). However, the success of the government is dependent on forming effective policies that will eradicate corruption and child labour. When children are illiterate, it destroys their future and increases the country’s dependency level. The general elections are scheduled for July 29th, 2018. There is optimism that the new government will implement policies that will improve the investment climate in the country. Also, the country should develop quality infrastructure in the mining areas to reduce production costs and favour investments in Mali.

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