London-listed Endeavour Mining and two smaller gold producers have signed agreements to operate under Mali’s controversial new mining code, government officials said on Monday.
The code, introduced in August 2023, increases state control and tax burdens on mining operations. Its rollout triggered disputes with mining firms and contributed to a 23% drop in Mali’s gold production last year, down to 51 metric tons.
Finance Minister Alousseni Sanou and the Minister of Mines announced on state television that Somika SA—80% owned by Endeavour and 20% by the Malian state—along with Faboula Gold and Bagama Mining have agreed to transition to the new regulations. Details of the agreements were not disclosed.
Somika’s Kalana gold project has yet to begin production, while Faboula and Bagama started with small-scale output of 500 kilograms each in 2021 but have been mostly idle since the new rules came into effect.
Somika director Abdoul Aziz said mine construction will begin six months after the agreement, with production expected 18 months later. Sanou estimated Somika’s mine could operate for 10 years with annual revenue of 135 billion CFA francs ($239 million). Bagama and Faboula have projected five-year lifespans with turnovers of 50 billion and 75 billion CFA francs, respectively, and the three projects combined are expected to generate about 6,000 jobs.
Mali’s largest gold producer, Barrick Gold, remains in dispute with the government after export restrictions and the seizure of bullion earlier this year. Barrick has taken the case to arbitration at the World Bank’s ICSID.
Mali is one of Africa’s top gold producers, but investor confidence has been shaken by regulatory uncertainty.