Mali has created a state body to regulate the trade in artisanal gold and other precious substances, as the transitional government moves to tighten control over one of the West African nation’s main sources of revenue.

The Council of Ministers announced the establishment of the Malian Office for Precious Substances on Tuesday, following a decision by the cabinet in March as part of efforts to centralize and secure sales in the sector.

The authorities said the measure is part of the implementation of the 2023 Mining Code and a local content law, aimed at reinforcing state sovereignty over the value chain of precious substances.

Gold from artisanal and small-scale mining occupies a strategic place in Mali’s economy, providing foreign exchange, tax revenue, and jobs for 2 million people across 350 to 400 sites, the government said. However, the sector still faces challenges, including smuggling and gaps in recorded flows.

Mali is Africa’s fourth leading gold producers, according to World Gold Council data, which put the country’s 2025 output at 82.9 tons, behind Ghana, South Africa and Burkina Faso.

Official statistics show Mali produced 72.2 tons of gold in 2022, including 6 tons from artisanal mining, generating 763 billion CFA francs ($1.27 billion) for the state budget. Mali’s gold exports climbed to about 2.75 trillion CFA francs ($4.81 billion) in 2025, compared with 1.61 trillion CFA francs the previous year, according to Reuters, citing the national statistics institute Instat.

The reform comes as Bamako seeks to increase state revenue from mining. The 2023 Mining Code allows the state and local investors to hold up to 35% in new mining projects.

Canadian miner Barrick and Australia’s Resolute Mining have faced direct disputes with Bamako under the government’s push to extract more revenue from the gold sector. Other operators, including Canada’s B2Gold, British firm Hummingbird Resources, and London-headquartered Endeavour Mining, have reached agreements with the state to align parts of their operations with Mali’s revised mining framework.

Several of Mali’s neighbors have also moved to tighten control over mineral resources. Burkina Faso has expanded state purchases of artisanal gold through its National Precious Substances Company.

Last year, Niger nationalized the country’s only industrial gold mine, accusing its Australian-owned operator McKinel Resources Limited of “grave contractual breaches.” Ghana created a state gold board last year to regulate small-scale gold exports, while Guinea banned raw gold exports in June to boost local refining.