Post #527

🔵I Don't Want to Play with You Anymore🔵 Why Does Mali Need So Many State-Owned Mining Companies? 🇲🇱 On Friday February 6, Mali’s government established a new state-owned company, SOPAMIM, which is expected to manage the state’s stakes in mineral projects. But what did Bamako do to their previous, 2022 public mining company, SOREM? 🔸 Few countries can boast two state-owned mining companies operating in the same sector. Typically, one corporation is created — like Nigeria’s NNPC — which does it all: produces, manages state shares, and collects sector-wide bribes. This makes sense because the line between production and managing state stakes is razor-thin. ⏩ Rejecting Occam’s Razor as a colonial relic Mali has now created another separate company for everything: SOREM — for new projects, SOPAMIM — for state shares. Nice, but what's actually the reason? 1️⃣First, SOREM clearly lacked competence and efficiency. Since its creation in 2022, it has taken over several gold assets, but there’s no evidence of it succeeding in running them. At best, it managed to attract a foreign partner. 2️⃣Second, the government is increasingly demanding maximum state participation(35% by law) in new projects. This means neither SOREM nor the traditional ministries who previously managed the stakes may be able to handle the new volume and responsibility. It makes sense to gather all assets in one place with professional accountants and auditors. In other words, the new company is Bamako's second attempt to find a workable model for state involvement in the mining sector—this time, with higher stakes. ➡️ Stay informed - @devilsbelow