No products in the cart.

Home Business Mali Takes Over Once-Leading Morila Gold Mine for $1 in Bid to Revive Production

Business News

Mali Takes Over Once-Leading Morila Gold Mine for $1 in Bid to Revive Production

Joy ChukwuJune 7, 20251 Mins read120

The Malian government has officially taken over Société des Mines de Morila SA, once one of the country’s most productive gold mines, following the approval of a sale agreement during the Council of Ministers meeting on Wednesday.

The agreement, sealed for a symbolic sum of one US dollar, transfers 80 per cent of the company’s shares to the state, making it the sole owner of Morila SA. The remaining 20 per cent was already state-owned.

Founded in 2000, the Morila mine was a joint venture operated by AngloGold Ashanti and Randgold Resources (now Barrick Gold), each holding 40 per cent alongside Mali’s 20 per cent.

Located in the Bougouni region, the mine was once a powerhouse of the national gold industry, producing over 600,000 ounces annually during its peak in the early 2000s. However, output gradually declined, and the main quarry ceased operations in 2020.

To revive the site, Australian mining company Firefinch Limited took over operations but failed to restart meaningful production by reprocessing tailings and a proposed agro-industrial venture.

By 2022, all activity had stopped. A memorandum of understanding signed in May 2024 paved the way for the state to repurchase Firefinch’s shares and settle outstanding debts, ultimately leading to this week’s final acquisition.

The government says it aims to prevent the permanent closure of the mine. Officials are exploring options such as a small-scale relaunch or forming a public-private partnership to exploit remaining secondary deposits. Despite its diminished output, a 2021 estimate by Firefinch indicated the mine still holds approximately 500,000 ounces of gold in low-grade reserves.

The takeover comes as Mali’s gold production dropped sharply to 51 tonnes in 2024, down from 66.5 tonnes the previous year—a 23 per cent decline. Gold remains a cornerstone of Mali’s economy, accounting for around 75 per cent of export earnings.