Malian government officials announced that three gold producers, including London-listed Endeavour Mining (EDV.L), have agreed to adopt Mali’s controversial new mining code, marking a breakthrough after months of uncertainty that unsettled the country’s mining industry.

Finance Minister Alousseni Sanou and the Minister of Mines disclosed in a televised address that Somika SA, 80% owned by Endeavour and 20% by the Malian state, along with Faboula Gold and Bagama Mining, have signed memorandums of understanding to operate under the revised code.

Specific terms of the agreements were not made public, Reuters reported.

Mali’s transitional military-led government enacted the revised mining law in August 2023 to increase state revenue by raising taxes and expanding government ownership in mining projects, aiming for greater resource sovereignty and national development.

The new code has faced resistance from miners and is linked to a 23% drop in Mali’s gold production last year, down to 51 metric tons.

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Although these three companies contribute a small share of Mali’s total gold output, their acceptance of the code is a significant step forward.

Faboula Gold and Bagama Mining, which began production in 2021 with about 500 kilograms each, and Somika’s Kalana project, which has not yet started production, had largely paused operations since the code’s introduction.

Somika’s Director Abdoul Aziz said mine construction will begin within six months of signing, with production expected 18 months later.

Minister Sanou noted that Somika’s mine is projected to operate for 10 years and generate 135 billion CFA francs (approximately $238.9 million) annually.

Faboula and Bagama mines are each expected to operate for five years, with annual revenues of 75 billion and 50 billion CFA francs, respectively.

The three projects combined are anticipated to create around 2,000 jobs. Meanwhile, Mali’s largest gold producer, Barrick Gold (ABX.TO), remains in a legal dispute with the government.

Barrick halted operations at its Loulo-Gounkoto complex in January 2025 after the government seized gold stocks stored there.

The Loulo-Gounkoto mine, run by Barrick’s local subsidiary, is one of Mali’s most productive mines and a key source of export revenue, contributing about 15% of Barrick’s total gold output before suspension.

Barrick has since initiated arbitration with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID).

Last month, Mali finalized the takeover of the Yatela and Morila gold mines, previously abandoned by foreign owners.

While Mali remains one of Africa’s leading gold producers, growing regulatory uncertainty has shaken investor confidence and reduced output.

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Image Credit: Mugglehead