New York-based Flagship Gold Corp has signed a partnership with Mali’s state miner to restart production at the Morila gold mine, marking the first U.S. investment under the military-led country’s new mining code, the government said.
The agreement, signed Wednesday in Bamako, allows Flagship to take an equity stake in Morila SA, which holds estimated reserves of 2.5 million ounces, the mines ministry said in a statement. Financial terms were not disclosed.
Morila, in Sanso in the southern Sikasso region, was taken over by the state in June after Australia’s Firefinch abandoned operations in 2022 amid falling output and rising costs.
Flagship—incorporated in June 2024—enters Mali as military governments across the Sahel tighten control over natural resources. Mali’s August 2023 mining code allows the state to own up to 30% of new projects and scraps key tax breaks. While the overhaul has rattled some foreign investors, Russian and Chinese firms have expanded via state-backed deals.
“This is a win-win partnership,” Mines Minister Amadou Keita said.
Asked about financing plans for Morila, Flagship’s legal counsel David Alan Miller of Graubard Miller said the company could not provide details beyond publicly available information.
Once operated by Barrick and AngloGold Ashanti, Morila is being revived as gold prices top $4,000 an ounce, intensifying competition for high-grade deposits. Economy Minister Alousséni Sanou said the deal “raises hope” for the sector.
Mali, one of Africa’s top gold producers, has seen investment wane amid regulatory crackdowns and insecurity. Industrial gold output fell 32% year-on-year to 26.2 tonnes by end-August, according to government data.