Mali secures first U.S. mining investment, restarting historic gold mine after Australia’s exit

The United States-based Flagship Gold Corp. has entered into a strategic partnership with Mali’s state-owned Mineral Resources Research and Exploitation Company (SOREM) to restart production at the Morila gold mine, marking the first American investment under the junta-led nation’s new mining code.

Following confirmation by Mali’s military-led government, Reuters reported that the agreement, finalized on October 8, 2025, allows Flagship Gold Corp. to acquire equity in Morila SA and contribute capital and technical expertise to resume production at one of Mali’s most significant gold mines.

The deal comes after the government’s June 2025 takeover of the mine, which involved purchasing an 80 percent stake from Australia’s Firefinch Limited for a symbolic one U.S. dollar.

The Morila mine, opened in 2000 and located in the southern city of Sanso in the Sikasso region, has long served as a cornerstone of Mali’s mining industry and has been a major contributor to the country’s gold output for over two decades.

Before now, management of the site was historically overseen by Barrick Gold and AngloGold Ashanti, with total production exceeding 7.5 million ounces of gold since its inception.

Remaining reserves are estimated at 2.5 million ounces, although operations ceased in 2022 due to declining output and rising costs.

The new agreement establishes Flagship, led by CEO Ron Slaughter and incorporated in 2024, as a key partner with SOREM in the rehabilitation of the Morila mine and the resumption of full-scale production.

Mali’s transitional government describes the collaboration as a “win-win” model that enhances national mining sovereignty while attracting responsible foreign investment.

“This partnership benefits both parties,” Amadou Keita, Mali’s Minister of Mines said. “It reinforces our commitment to reclaiming control of our resources and ensures that mining works for the Malian people.”

The partnership occurs against a backdrop of growing resource nationalism across the Sahel, where military-led governments in Mali, Burkina Faso, and Niger have increased control over gold and uranium assets.

Mali’s new mining code, adopted in August 2023, grants the state up to 30 percent ownership in new projects and eliminates several long-standing tax exemptions.

While some Western investors have expressed concern over these reforms, Russian and Chinese companies have expanded their presence through state-backed agreements.

Mali’s government underscores that the new code is designed to secure a fairer share of the country’s mineral wealth, even as the nation faces declining production and persistent insecurity.

Official data shows that industrial gold output fell 32 percent year-on-year to 26.2 metric tonnes by the end of August 2025, reflecting the combined effects of regulatory changes and operational disruptions. The revival of Morila is regarded as a critical step toward stabilising the sector.

“This agreement raises hopes for the future of mining in Mali,” said Alousséni Sanou, Minister of Economy and Finance. “It demonstrates that our reforms can attract serious partners while protecting national interests.”

Although Flagship’s legal counsel, David Alan Miller of Graubard Miller, stated that the company could not provide additional details on financing plans beyond publicly disclosed information, the agreement signals a redirection of U.S. investment focus from the Democratic Republic of Congo, which continues to face operational and regulatory challenges.

With gold prices surpassing $4,000 per ounce, the resumption of production at Morila holds particular significance. The project is expected to inject momentum into Mali’s mining industry and signal a cautious reopening to Western capital under the country’s evolving resource governance framework.