Mali has attracted its first U.S. mining investment to revive a historic gold mine following the withdrawal of its previous Australian operator.
The U.S.-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 government’s new mining code.
According to a statement confirmed by Mali’s military-led government and reported by Reuters, the agreement was finalized on October 8, 2025.
It grants Flagship Gold Corp. equity in Morila SA and authorizes the company to provide capital and technical expertise to resume production at one of Mali’s most important gold assets.
The deal follows the government’s June 2025 acquisition of an 80 percent stake in the mine from Australia’s Firefinch Limited for a symbolic one U.S. dollar, as seen on Business Insider Africa.
Located in the southern city of Sanso in the Sikasso region, the Morila gold mine has long been a cornerstone of Mali’s mining sector since opening in 2000.
Previously operated by Barrick Gold and AngloGold Ashanti, the site has produced more than 7.5 million ounces of gold over its lifespan.
Estimated reserves stand at about 2.5 million ounces, though operations halted in 2022 due to declining yields and rising production costs.
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Under the new agreement, Flagship Gold, incorporated in 2024 and led by CEO Ron Slaughter, will work with SOREM to rehabilitate the Morila site and resume full-scale production.
Mali’s transitional government has described the partnership as a “win-win” collaboration that balances national sovereignty with foreign investment.
“This partnership benefits both parties,” said Mali’s Minister of Mines, Amadou Keita. “It reinforces our commitment to reclaiming control of our resources and ensures that mining works for the Malian people.”
The development comes amid rising resource nationalism across the Sahel, where military-led governments in Mali, Burkina Faso, and Niger have tightened control over gold and uranium assets.
Mali’s new mining code, enacted in August 2023, grants the state up to 30 percent ownership in new mining projects and abolishes several long-standing tax exemptions.
While the reforms have drawn concern from some Western investors, Russian and Chinese firms have expanded their foothold through state-supported partnerships.
The Malian government maintains that the code aims to secure a fairer share of the nation’s mineral wealth, even as the country faces falling production and persistent insecurity.
Official figures show that industrial gold output dropped by 32 percent year-on-year to 26.2 metric tonnes as of August 2025, reflecting the combined effects of regulatory shifts and operational challenges.
The revival of Morila is viewed as a crucial step toward stabilizing the country’s gold production.
“This agreement raises hopes for the future of mining in Mali,” said Minister of Economy and Finance Alousséni Sanou. “It demonstrates that our reforms can attract serious partners while protecting national interests.”
Flagship Gold’s legal counsel, David Alan Miller of Graubard Miller, said the company could not provide additional details regarding financing beyond what has already been publicly disclosed.
Still, the agreement marks a notable shift in U.S. investment strategy away from the Democratic Republic of Congo, which continues to face regulatory and operational hurdles.
With global gold prices surpassing $4,000 per ounce, the resumption of operations at Morila could provide a timely boost to Mali’s mining industry.
The project is expected to revitalize the nation’s gold output and signal a cautious reopening to Western capital under its evolving framework for resource governance.
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Image Credit: SGS Société Générale de Surveillance SA
