Mali government takes over abandoned Yatela and Morila gold mines
Despite being Africa's second-largest gold producer with an annual output of around 65 tonnes (t), Mali has struggled to profit from its gold assets.
The nationalisation reflects a broader trend among West African states, including Burkina Faso and Niger, to leverage high commodity prices for economic growth.
The military leaders of Mali, who assumed power following coups in 2020 and 2021, had declared their intentions to nationalise the mines in 2024.
Since the military takeover, foreign mining companies operating in Mali have faced increased taxes, revised contracts and regulatory crackdowns.
The government's inclination towards Russian interests from Western investors has also been noted amidst the backdrop of strong gold prices, which have been buoyed by US trade policies and geopolitical tensions.
The Yatela mine, located in the western Kayes region, was abandoned in 2016 by the Sadiola Exploration Company, a joint venture between South Africa's AngloGold Ashanti and Canada's IAMGOLD, due to low gold prices and uneconomical operations, despite the presence of unexploited reserves.
Similarly, the Morila mine in the southern Sikaso region was left by the Australian company Firefinch in 2022.
The government's recent statement highlighted 'significant environmental and financial liabilities' associated with the mine's abandonment.
The newly established Society for Research and Exploitation of Mineral Resources of Mali (SEMOS) is set to revive the mines.
Details of the operational and financial strategies for these mines remain undisclosed.
The challenge of extracting value from Yatela and Morila is compounded by the government's efforts to reopen Barrick's Loulo-Gounkoto gold complex, which was recently placed under state control amid a dispute with the company over taxes and ownership.
In June 2025, Mali initiated construction of a new gold refinery backed by Russia, marking a step towards the country's goal of asserting greater control over its natural resources.
"Mali government takes over abandoned Yatela and Morila gold mines" was originally created and published by Mining Technology, a GlobalData owned brand.
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