Mining

Mali: New Mining Code to Apply to Allied Gold’s Sadiola Gold Mine

Mali: New Mining Code to Apply to Allied Gold’s Sadiola Gold Mine
Thursday, 05 September 2024 11:54

Mali’s new mining code, adopted in 2023, enables the government to earn CFA500 billion more from the mining sector yearly. This code, however, is yet to be applied to the country’s active gold mines. 

The Malian government and Allied Gold, a Canadian company, have agreed in principle (AIP) to renew the firm’s operating permit for its Sadiola gold mine for 10 more years. This AIP or memorandum of understanding would make Sadiola the first mine already in production subject to Mali's new mining code.

The new code allows Mali to hold a maximum stake of 35% in mines, up from 20% previously. The 35% includes 5% for local investors. Allied Gold revealed that it negotiated certain derogations for royalties payable under the new code without providing further details.

"The compromise on the terms of the Memorandum of Understanding represents an important milestone, providing certainty for the future of the Sadiola gold mine while reinforcing Allied's long-term commitment to Mali as a prolific jurisdiction for precious metals mining," the company wrote in a statement dated September 3, 2024.

Active since 1997, Sadiola is one of Mali's oldest gold mines. Allied Gold produced 171,007 ounces at the mine last year and targets 205,000 ounces this year. The company plans to ramp up production at the mine by integrating resources from the neighboring Diba deposit, with average production of 400,000 ounces per year from 2029.

Impact of the New Mining Code

The new agreement comes to settle disputes about unpaid debts owed by Allied to the government. 

Before the new mining code was adopted, an audit revealed a shortfall of 300 to 600 billion FCFA ($500 million to $1 billion) in mining revenues for the State. The audit, however, did not indicate the mines behind this shortfall.

Bamako claims the new code will allow it to generate additional annual revenues of at least 500 billion FCFA ($842 million) and increase mining's contribution to GDP from around 10% to 20%.  However, whether the new code will apply to existing gold mines, which account for most of Mali's gold production, has not yet been officially determined

According to several companies, these mines should remain subject to the code in force at the time of commissioning. In Mali, Canada's Barrick Gold and B2Gold operate the Loulo-Gounkoto and Fekola gold mines respectively, while Australia's Resolute is active at the Syama gold mine. The UK's Hummingbird Resources is also active at Yanfolila.

Emiliano Tossou

Lire aussi:

On the same topic
• Mailo solar plant begins feeding 25 MW into Zambia’s grid, part of a 110 MW project.• Zambia aims for 50% electricity access by 2030 with 1,000 MW of...
• ENGIE installs 15 mini-grids with 1.4 MW capacity in three Nigerian states.• Project aims to cut diesel use and reduce CO₂ emissions by 33,000 tonnes.•...
• Pipeline resumes crude flows after May 24 leak halted supply.• Repairs highlight Libya’s urgent need to modernize 1960s-era pipelines.• NOC...
• Sante Fe Minerals signs deal to acquire Eburnea gold project from Turaco Gold.• Transaction gives Sante Fe full or majority stakes in Satama and Bouaké...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
03

• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...

Burkina Faso: Vista Group Acquires Controlling Stake in Société Générale
04

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
05

• Kenyan President William Ruto signs strategic partnership with UK Prime Minister Keir Starmer to b...

William Ruto in London: New Agreement Aims to Double Kenya-UK Trade by 2030
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.