Bamako: Nguvu Mining Group, a subsidiary of Adamus Resources Limited, is under scrutiny in Mali following accusations of operational and financial misconduct by the country's Ministry of Mines. The ministry has issued a 90-day ultimatum for the company to rectify these issues or face the revocation of its mining licenses.
According to Ghana Web, an official letter from Mali's Minister of Mines, Amadou Keita, highlighted concerns with Nguvu Mining Group's subsidiaries, SEMICO-SA and MIKO-SA, which hold permits for the Segala and Kofi mining concessions in the K©ni©ba Circle. The ministry discovered significant violations during regulatory meetings, particularly involving MIKO-SA.
The infractions include a halt in mining operations for over two years without notifying the mining administration, non-payment of taxes and royalties, unauthorized offshore banking, and failure to repatriate foreign earnings. These actions breach Uniform Law No. 2016-007 concerning regional foreign exchange regulations and violate Article 18 of Mali's Mining Code established in 1999.
Minister Amadou Keita warned that the state could withdraw mining permits if the company does not address these violations within the stipulated timeframe. The legal framework allows for such measures when unauthorized operational suspensions and non-payment of state dues are confirmed.
Nguvu Mining Group, with extensive operations in West Africa, is backed by Adamus Resources Limited, known for the Nzema Gold Project in Ghana. The allegations could lead to increased scrutiny from investors and regional mining authorities.
The violations took place near the Senegalese border, a critical area for Mali's gold mining industry due to its rich deposits. Mali's transitional government has recently ramped up audits of foreign mining firms to enforce stricter laws and enhance state benefits from mineral resources. The push towards stricter compliance with the 1999 Mining Code, alongside new regulations, indicates a stringent approach toward non-compliance and unauthorized shutdowns.