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Flagship Gold, a US-based company, signss a deal to revive Mali’s Morila Mine

The Mali government announced that New York's Flagship Gold Corp. has signed an agreement with the state-owned Mali miner for the restart of production at the Morila Gold Mine. This is the first U.S. Investment under the new mining code in the nation led by the military.

Mali's Mines Ministry said that the agreement signed on Wednesday in Bamako allows Flagship to purchase equity in Morila SA. The company has estimated reserves of 2,5 million ounces. The partnership details were not disclosed.

The state took over the mine in the southern city Sanso, in Mali's Sikasso Region, in June, after Australia's Firefinch had abandoned its operations in 2022 due to declining output and increasing costs.

Flagship, which was incorporated in 2024, enters Mali during a period of resource nationalism in the Sahel region, where militarized governments in Burkina Faso and Niger have tightened their control over gold and uranium assets.

Mali adopted a mining code in August of 2023. This new code will increase state control, by allowing the government to own up to 30% of new projects. It will also eliminate key tax exemptions.

Foreign investors are unnerved by the overhaul, even though Russian and Chinese companies have increased their presence via state-backed agreements.

Amadou Keita, Mines Minister, said: "This is a partnership that benefits both parties."

David Alan Miller, Graubard Miller's legal counsel, responded to questions regarding Morila’s financing plans by saying that the company was unable to provide any additional information than what is already publicly available.

Morila is being revived, once operated Barrick and AngloGold Ashanti. Gold prices have soared past $4,000 per ounce, causing global competition for deposits of high quality.

Alousseni Sanou, Mali's Minister of Economy and Finance, said that the deal "raises hopes" for the future of mining in the country.

Investments in Mali have dropped as a result of regulatory crackdowns, and the insecurity has taken hold. According to government statistics, industrial gold production fell by 32% on an annual basis to 26.2 tonnes at the end of August. (Reporting and writing by TiemokoDiallo, Maxwell Akalaare Adombila, Editing by Robbie CoreyBoulet and Joe Bavier).

(source: Reuters)