Mali Subsoil Data Ownership: Zarubezhgeologia Signs Key Contracts

• Mali signed two contracts with Russia's Zarubezhgeologia for subsoil mapping and a "Subsoil Management" geological information system.
• The agreements, signed in Moscow, cover over half of Mali's territory and include staff training for the National Directorate of Geology and Mines.
• Mali already operates a digital cadastre, SICAM, raising questions about integration with the new Russian-designed system for mineral licensing data.
• Crucial details regarding data ownership, usage rights, and software control for the new system remain undisclosed in public accounts.
• Mali's existing mining code protects company data confidentiality, but the terms for state-commissioned surveys under the new contracts are not yet clear.

A critical aspect not fully addressed in the publicly available details of the Rosgeologia Mali contracts is the precise ownership of the data generated and stored within the new "Subsoil Management" system.

Mali's Mines Minister, Amadou Keïta, formalized two significant agreements with Zarubezhgeologia, the international arm of Russia's state-owned geological entity, Rosgeologia (also known as Rosgeo). These contracts were signed on October 28 during the Russia-Africa summit held in Moscow, marking a notable expansion of cooperation beyond the security sector, into the critical domain of mineral resource management.

The first agreement mandates the creation of geological maps at a 1:200,000 scale, covering two distinct areas that collectively encompass over half of Mali's landmass. This extensive mapping project is slated for completion within 24 months. The second contract involves the acquisition of a national geological information system, branded "Subsoil Management," with an implementation timeline of eight months.

According to statements relayed by Reuters, this new Mali geological information system is intended to enable Mali to manage geological data, facilitate mineral licensing, and enhance regulatory oversight. Other reports characterize the system primarily as a spatial storage solution equipped with tools for data visualization and analysis. The mapping initiative also includes a training component for personnel from Mali's National Directorate of Geology and Mines.

Mali has already made significant strides in digitalizing its mining administration. On April 17, President Assimi Goïta unveiled a new, fully digital cadastre system, SICAM, which was developed by Malian experts. This existing system currently lists 631 titles and is integrated with the financial platforms of the Ministry of Mines, the Treasury, and the tax directorate, reflecting a concerted effort to modernize resource governance.

Mines Minister Keïta indicated that SICAM was developed to align with the head of state's vision for the Malian state to reassert control over the mining sector. The ITIE Mali description of SICAM highlights its functionalities, allowing users to apply for titles, monitor the processing of their applications, pay requisite fees, and access various data, including geological maps.

The introduction of a new system designed by a Russian firm, intended to handle Mali mineral licensing data and oversight, raises questions about its interaction with the established SICAM cadastre. This is particularly pertinent given that the existing system already manages titles and maps digitally. The mining sector has seen recent activity, with the Council of Ministers authorizing 24 renewals for gold and lithium permits between August 21 and September 30, following a freeze on permit procedures that began in late 2022. However, applications for new titles remained suspended as of mid-October.

A critical aspect not fully addressed in the publicly available details of the Rosgeologia Mali contracts is the precise ownership of the data generated and stored within the new "Subsoil Management" system. While the contracts outline the mapping of Mali's subsoil and the establishment of the Mali geological information system, they do not explicitly state who will own the resulting data, nor do they specify the exact boundaries of the two survey areas or the financial terms.

This ambiguity extends to several key areas: who will own the geological maps and the underlying data, under what terms this data may be used, and who will maintain control over the software, its updates, and its daily operations. The announced training for Malian staff focuses on satellite-image interpretation, which enhances data reading skills but does not confer control over the system itself. A state can possess data without the means to maintain it independently of its contractor, or hold broad rights over a database without outright ownership.

Mali is actively developing its own institutional capacity in this domain. Just four weeks before the Moscow signing, on September 30, the Council of Ministers approved draft legislation to establish a new agency dedicated to geological research, production, security, and dissemination of knowledge, replacing a program from 1990. Furthermore, Mali's existing mining code, specifically Articles 121 and 122, stipulates confidentiality for information gathered from title holders, protecting it for the life of the title plus one year, and preventing its release to third parties for three years without the author's consent. However, these provisions primarily cover company-provided data, leaving the terms for state-commissioned surveys, such as those under the Zarubezhgeologia contracts, open to interpretation regarding Mali subsoil data ownership.

The lack of clarity regarding Mali subsoil data ownership, particularly concerning the new geological information system, presents significant considerations for mining companies operating or seeking to operate in the country. Lawyers advising these entities must meticulously scrutinize the terms of these new contracts, focusing on provisions related to data ownership, access protocols, and confidentiality. The integration of the "Subsoil Management" system with the existing SICAM cadastre and the national mining code provisions (Articles 121 and 122) will be crucial for compliance officers to monitor, as potential data governance and operational risks could arise.

The 1:200,000 scale maps provided by Zarubezhgeologia will indicate prospective areas for exploration rather than detailing the value of specific deposits. This foundational data, combined with the new Mali mining data control capabilities, will shape future exploration and exploitation efforts. With applications for new titles still on hold, the eventual reopening of the licensing process will undoubtedly be influenced by how these new data systems are integrated and governed, underscoring the strategic importance of clear data control and ownership for Mali's mining future.

Lawyers advising mining companies in Mali must scrutinize the terms of the new geological information system contracts, particularly regarding data ownership, access, and confidentiality, as the lack of clarity could impact future licensing, regulatory compliance, and potential disputes over mineral rights and information use. Compliance officers should monitor the integration of this new system with Mali's existing SICAM cadastre and national mining code provisions (Articles 121 and 122) to identify potential data governance and operational risks.

Source: Original reporting via Reuters and other sources