Investing.com -- The recent overhaul of the extraction industry by the Malian government could dissuade companies from investing in the country, home to the world’s second-largest gold mine, according to Duncan Wanblad, Chief Executive Officer of Anglo American (JO:AGLJ) Plc.
Four years ago, Mali’s military rulers took control and have since demanded a larger share of income from the nation’s gold and other resources. This has led to the implementation of a new mining code and companies being ordered to pay millions of dollars in back taxes and dividends. This move came after a state audit revealed a shortfall of up to 600 billion CFA francs ($950 million) in government revenue.
Wanblad expressed his concerns during a presentation at the Mining Indaba conference in Cape Town on Monday. He described the situation in Mali as being "of grave concern to any prospective mining investor." He emphasized the need for governments in Africa, and around the world, to provide fiscal and regulatory stability.
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