New York-based Flagship Gold Corp has signed a partnership agreement with Mali’s state-owned mining company to restart operations at the Morila gold mine, marking the first U.S. investment under the West African nation’s new mining code, Mali’s government announced.
The agreement, signed on Wednesday in Bamako, grants Flagship Gold an equity stake in Morila SA, which holds estimated reserves of 2.5 million ounces of gold, according to Mali’s Ministry of Mines. Specific financial details of the deal were not disclosed.
Located in Sanso, in the Sikasso region of southern Mali, the Morila mine was taken over by the government in June after Australia’s Firefinch Ltd abandoned operations in 2022 due to declining output and rising costs.
Flagship Gold, incorporated in June 2024, is entering Mali amid a trend of resource nationalism across the Sahel, where military-led governments in Burkina Faso, Niger, and Guinea are tightening control over key mineral assets such as gold, uranium, and bauxite.
Mali’s new mining code, adopted in August 2023, increased state ownership to up to 30% in new projects and eliminated several tax exemptions. While the reforms have raised investor concerns, Russian and Chinese companies have expanded their involvement through state-backed ventures.
“This is a win-win partnership,” said Mines Minister Amadou Keita.
David Alan Miller of Graubard Miller, Flagship’s legal counsel, said the company could not yet disclose details of its financing plans.
Once operated by Barrick Gold and AngloGold Ashanti, the Morila mine’s revival comes as gold prices exceed $4,000 per ounce, intensifying global competition for high-grade deposits.
Mali’s Economy Minister Alousséni Sanou said the deal “raises hope” for the country’s mining sector. Despite being one of Africa’s top gold producers, Mali has faced declining foreign investment and rising insecurity, with industrial gold output dropping 32% year-on-year to 26.2 metric tonnes by end-August, according to government data.
Source:Africa Publicity
