Three gold producers, including London-listed Endeavour Mining (EDV.L), have agreed to operate under Mali’s controversial new mining code, signaling a possible turning point in a months-long regulatory standoff that has roiled the country’s gold sector.
In a televised address, Finance Minister Alousseni Sanou and the Minister of Mines confirmed that Somika SA (80% owned by Endeavour and 20% by the Malian government), Faboula Gold, and Bagama Mining have signed a memorandum of understanding to adopt the revised mining framework. Specific terms of the agreements were not made public.
The updated mining code, introduced in August 2023, increases state participation and raises taxes on mining firms. While designed to boost domestic revenue and assert resource sovereignty, the changes triggered industry backlash and have been cited as a key factor in Mali’s gold production declining 23% in 2024 to 51 metric tons.
Though the three companies currently represent a small share of national output, their agreement is seen as a breakthrough in easing tensions between the government and mining operators.
- Faboula Gold and Bagama Mining both began small-scale production in 2021, with annual outputs of roughly 500 kg each.
- Somika’s Kalana project has not yet started production.
Somika Director Abdoul Aziz confirmed that construction at the Kalana site will begin within six months, with production slated to start 18 months later. The project is expected to operate for 10 years, generating approximately 135 billion CFA francs ($238.9 million) in annual revenue.
Meanwhile, Faboula and Bagama are expected to produce for five years each, with projected annual revenues of 75 billion CFA francs and 50 billion CFA francs, respectively. Each operation is estimated to create around 2,000 jobs.
Barrick Gold Holds Out
The deals come as Mali’s largest producer, Barrick Gold (ABX.TO), remains entrenched in a legal battle with the state. In January 2025, Barrick halted operations at its flagship Loulo-Gounkoto complex after the government seized on-site gold reserves.
The mine—run by Barrick’s local subsidiary—previously accounted for 15% of the company’s global output. Barrick has since filed for international arbitration with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID).
In a broader move to regain control over strategic resources, the government recently finalized its takeover of the Yatela and Morila mines, both previously abandoned by foreign investors.
Despite maintaining its position as one of Africa’s top gold producers, Mali’s mining sector remains under strain. While the recent agreements signal potential progress, regulatory uncertainty continues to deter investment and suppress production.
