A NEW York mining firm has struck a deal with Mali’s government to resume production at the Morila gold mine marking the first US investment under the West African nation’s controversial new mining regulations.
Citing Mali’s mines ministery, Reuters said that Flagship Gold Corp. had finalised the agreement in Bamako on Wednesday. It would acquire a stake in Morila SA, which controls reserves estimated at 2.5 million ounces in the Sikasso region. Financial terms were not disclosed, said the newswire.
The Morila site, previously run by Barrick and AngloGold Ashanti, was nationalised in June following its abandonment by Australia’s Firefinch in 2022 amid falling yields and mounting expenses.
Flagship, established only in June 2024, enters Mali as Sahel nations pursue aggressive resource nationalism policies. The country’s 2023 mining code permits state ownership of up to 30% in new ventures while eliminating longstanding tax breaks, unsettling foreign investors even as Russian and Chinese companies expand their footprint.
“This is a win-win partnership,” Mines Minister Amadou Keita said.
David Alan Miller, representing Flagship’s legal advisers Graubard Miller, declined to reveal financing arrangements beyond publicly available information.
The project’s revival coincides with gold exceeding $4,000 per ounce, intensifying global competition for quality deposits.
Economy Minister Alousséni Sanou said the agreement “raises hope” for Mali’s mining sector.
Industrial gold production in Mali, amongst Africa’s leading producers, plummeted 32% year-on-year to 26.2 tons through August, government figures show, as regulatory pressures and security challenges deter investment, said Reuters.
