At a Glance
- Flagship Gold signs a landmark deal to revive Mali’s Morila mine.
- First major U.S. investment under Mali’s new mining code.
- Full operations expected by 2026 amid record-high gold prices.
Flagship Gold Corp, a U.S.-based mining company, has signed a landmark agreement with Mali’s government to restart operations at the Morila gold mine.
The move marks the first major American investment under Mali’s updated mining code and could signal a turning point for investor confidence in West Africa’s gold sector.
The agreement, finalized in Bamako, gives Flagship Gold a stake in Morila SA, which holds about 2.5 million ounces of gold reserves in the southern Sikasso region.
For the company, the deal represents a return to one of Africa’s richest gold belts at a time when global prices are holding near record highs of more than $4,000 an ounce.
New mining code shapes Mali’s next phase
Morila, once operated by Barrick Gold and AngloGold Ashanti, was nationalized in June after Australia’s Firefinch Ltd. abandoned the site in 2022 amid rising costs and falling output.
Its revival comes as Mali works to stabilize the sector following two years of uncertainty and declining production.
Government data show industrial gold output dropped 32% through August to 26.2 tons as investor concerns grew over political risk and fiscal terms.
Mali’s 2023 mining code allows the state to hold up to 30% in new ventures while ending several tax breaks that once appealed to foreign companies. The overhaul has discouraged some Western investors but drawn new interest from Russian and Chinese groups.
Mali moves to rebuild investor confidence
“This is a win-win partnership that underscores Mali’s commitment to balanced development,” Mines Minister Amadou Keita said during the signing ceremony, calling the deal a reflection of the government’s effort to modernize the industry.
Flagship Gold has not disclosed financing details, but people close to the talks say the company is working with partners to restart full-scale operations by 2026.
Economy Minister Alousséni Sanou described the agreement as “a turning point” for Mali’s mining industry, which remains a vital source of export revenue. For the government, the deal offers both jobs and a sign that foreign capital can return under clearer rules.
A calculated expansion into Africa
Founded in 2024, Flagship Gold focuses on low-cost, near-term development projects in resource-rich regions. Its holdings include the 1.05 million-ounce Pantanillo Gold Project in Chile’s Maricunga Belt.
The company’s move into Mali reflects a calculated expansion into emerging markets where governments are seeking greater local benefits while still courting foreign investment.
Flagship Gold aims to build a long-term presence in Africa, where new discoveries and policy changes continue to redefine opportunities for international miners.
