Mali completes takeover of gold mines abandoned by foreign companies
BAMAKO, June 30 (Reuters) - Mali has completed its takeover of the Yatela and Morila gold mines abandoned by their previous owners, the government announced at the weekend, but questions remain over how any untapped value can be released.
The takeovers and failure to disclose how the operations will be funded highlight the complex challenges facing Mali as it seeks to regain control of its natural resources and leverage high commodity prices to boost the economy, mirroring moves by other West African states including Burkina Faso and Niger.
Mali's military leaders, who took power after coups in 2020 and 2021, announced their intentions to nationalise the mines last year.
Since taking power the military government has pressured foreign mining companies through increased taxes, revised contracts, regulatory crackdowns and a general pivot from Western investors to Russian interests.
Mali produces about 65 tons of gold annually, making it Africa's second-largest producer. Gold prices, meanwhile, have remained strong this year, spurred largely by U.S. President Donald Trump's tariff impositions and wider geopolitical uncertainty.
However, making a success of Mali's gold assets has previously proved difficult.
The Yatela mine in Mali's western Kayes region was abandoned in 2016 after Sadiola Exploration Company - a joint venture of South Africa's AngloGold Ashanti (AU.N), opens new tab and Canada's IAMGOLD (IMG.TO), opens new tab - determined that low prices made operations uneconomical despite unexploited reserves.
The Morila mine in the southern Sikaso region was similarly abandoned in 2022 by Australia's Firefinch (N9F.MU), opens new tab, which had acquired stakes from mining giants Barrick Mining (ABX.TO), opens new tab and AngloGold Ashanti, leaving what the government's weekend statement described as "significant environmental and financial liabilities".
The mines will be revived by the newly established Society for Research and Exploitation of Mineral Resources of Mali (SEMOS), the government's statement said without specifying how they would be run and financed.
However, extracting value from Yatela and Morila will clearly be no easy task while the government attempts to reopen Barrick's mine complex.
The Canadian company's Loulo-Gounkoto gold complex was placed under state control this month in a major escalation of a protracted dispute over taxes and ownership.
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