Mali has secured a landmark agreement with Canada’s Allied Gold, acquiring a 35% stake in a new mining venture linked to the Sadiola gold project, a key component of the country’s rich mineral landscape. The newly launched Korali-Sud project is set to operate under Mali’s updated mining code, aimed at maximizing the country’s revenue from its natural resources.
In an official statement, Mines Minister Amadou Keita confirmed that the project would be governed by the revised mining regulations, marking a significant shift in Mali’s approach to managing its vast mineral resources. The updated code, which came into effect in 2023, seeks to bolster the role of the government and local stakeholders in the mining sector.
Finance Minister Alousseni Sanou highlighted that Mali stands to benefit from the new arrangement through dividends, thanks to the full application of the updated legal framework, with a focus on greater state control over mining operations.
The deal is part of Mali’s broader strategy to increase national revenue from its minerals, as the country continues to implement the 2023 mining code, which allows both the government and private investors to hold up to 35% stakes in mining ventures. While this move is expected to enhance the country’s economic standing, it has raised concerns among some foreign mining companies, who have expressed unease over the greater regulatory oversight introduced by the ruling military junta.
The projected annual revenue from the Allied Gold deal is approximately 120 billion CFA francs (about $188 million), with the Korali-Sud project estimated to contain 200,000 ounces of gold. This forecasted windfall is a positive development for Mali, which has been working to revitalize its mining sector after years of political instability.
In addition to the Korali-Sud project, Allied Gold has also moved forward with the second phase of the Sadiola mine, following the renewal of its operating license by the Malian government in October. The extension, which grants the company a 10-year operating period, will enable the firm to continue its operations in one of West Africa’s most lucrative gold regions.
The second phase of the Sadiola project is expected to cost approximately $500 million, with investments focused on expanding the mine’s infrastructure and production capacity. Allied Gold Mali’s vice president, Ilias Keita, confirmed that the new funds will be used to enhance operations and ensure long-term sustainability for the project.
As Mali seeks to leverage its mineral wealth to boost economic growth, the successful implementation of the new mining code could serve as a model for other countries in the region. However, ongoing negotiations between the government and mining companies will likely shape the future of Mali’s mining industry in the years to come.