NEWS & POLITICS
Mali deepens resource control with first U.S. investment under new mining code
U.S. based Flagship Gold Corp has entered a partnership with Mali’s state-owned mining company to restart operations at the Morila gold mine, Reuters reports. The deal marks the first American investment under Mali’s new mining code, which took effect in August 2023.
Enos Denhere
Bamako, Mali — October 10 (Running Africa) – Under the revised framework, the Malian government is entitled to acquire up to 30 percent stakes in new mining projects, while eliminating several tax exemptions previously granted to foreign companies — a move aimed at increasing state participation and revenue from the country’s lucrative gold sector.
The agreement, signed in Bamako, grants Flagship Gold Corp a stake in Morila SA, the company overseeing a site estimated to hold 2.5 million ounces of gold reserves. While officials confirmed the partnership, the financial terms of the deal remain undisclosed.
Located near Sanso in Mali’s Sikasso region, the Morila gold mine was taken over by the state in June 2025 following the withdrawal of Australia’s Firefinch Ltd, which halted operations in 2022 amid falling output and surging operational costs, according to Reuters and Miningmx.
Photo: Shore Africa
Flagship Gold Corp, incorporated in June 2024, enters Mali’s mining sector at a pivotal moment as Sahel nations — including Burkina Faso and Niger — move to assert greater control over their natural resources. Mali’s new mining code, enacted in 2023, allows the government to acquire up to a 30 percent stake in new mining ventures while revoking several tax exemptions previously afforded to foreign operators.
Mines Minister Amadou Keita hailed the Flagship deal as a “win-win partnership”, underscoring the administration’s push to secure more equitable returns from the nation’s mineral wealth. Economy Minister Alousséni Sanou echoed that optimism, describing the mining sector as a cornerstone of Mali’s economic recovery.
Meanwhile, David Alan Miller of Graubard Miller, serving as legal counsel for Flagship Gold, declined to comment further, citing confidentiality surrounding the agreement’s details.
Once operated by Barrick Gold and AngloGold Ashanti, the Morila mine is being revived amid a global gold rally, with prices now exceeding $4,000 per ounce. Yet, despite the favorable market conditions, Mali’s gold output has dropped sharply—down 32 percent year-on-year to 26.2 tons as of August 2025, according to government data. The decline underscores the structural and operational challenges confronting the country’s mining sector, even as it seeks to capitalize on renewed investor interest.
