Mali secures 35% stake in a new mining project
Mali has signed an agreement with Canada’s Allied Gold Corp to secure a 35% stake in a new mining project, Korali-Sud, linked to the company’s Sadiola project. The agreement reflects Mali’s strategy to derive greater revenue from its mineral resources under its revised 2023 mining code, which allows the government and private entities to hold up to 35% ownership in mining operations.
Korali-Sud will operate under the updated mining regulations. The project is expected to generate annual revenues of approximately 120 billion CFA francs ($188 million). Korali-Sud is estimated to yield 200,000 ounces of gold annually.
Economic growth
Allied Gold has commenced work on the $500 million second phase of the Sadiola mine following a 10-year license renewal by the Malian government in October. Mali’s Mines Minister, Amadou Keita, emphasized the alignment of the agreement with the provisions of the new mining code, while Finance Minister Alousseni Sanou highlighted its contribution to the nation’s economic growth. However, the revised mining code has caused disputes with certain mining companies, as it aims to maximize Mali’s benefits from its vast mineral resources.
This development positions Mali to strengthen its revenue streams from the mining sector while supporting Allied Gold’s ongoing expansion efforts in the region. The country’s mining industry is primarily focused on gold extraction, but also includes other minerals like manganese, iron ore, and phosphates. Mali is Africa’s third largest gold producer and one of the world’s most gold-dependent economies.
