Mali finalises takeover of gold mines abandoned by foreign operators

Mali has officially completed its takeover of the Yatela and Morila gold mines, both previously abandoned by their foreign owners, the government announced over the weekend.

The move aligns with a growing trend among junta-led West African nations seeking to reclaim control of strategic natural resources and leverage surging gold prices to boost their economies and reduce foreign dependency.

Mali, which produces roughly 65 tons of gold annually, is Africa’s second-largest gold producer. Yet despite its output, the country lacks an internationally certified gold refinery.

Earlier, Business Insider Africa reported reported that Mali has begun building a new gold refinery backed by Russia, a move its military-led government says will help the country gain greater control over its natural resources.

Despite this strategic shift, the road ahead is uncertain. The Yatela mine, located in western Mali’s Kayes region, was shuttered in 2016 by Sadiola Exploration Company, a joint venture between South Africa’s AngloGold Ashanti and Canada’s IAMGOLD, due to low prices, even though unexploited reserves remained, according to Reuters.

Likewise, the Morila mine in the Sikasso region was abandoned in 2022 by Australia’s Firefinch, which had previously acquired stakes from Barrick Gold and AngloGold Ashanti.

The government recently placed Barrick’s Loulo-Gounkoto gold complex under state control, escalating tensions over taxes and ownership rights, a signal that more confrontations with international mining firms may be on the horizon.

Since seizing power in 2020, Mali’s military government has vowed to overhaul the mining sector to ensure the state captures a larger share of gold revenues. These reforms are projected to boost annual government income by about $950 million, representing nearly 20% of the national budget.