What's Happening?
B2Gold, a Canadian mining company, has been granted approval by the Malian government to initiate underground mining operations at its Fekola Mine, located in southwest Mali. This development is a significant milestone for B2Gold as it aims to enhance production at the Fekola Complex. The underground operations, which include stope ore production, are expected to significantly increase the mine's gold output. The Fekola Complex, situated near the Senegal border, comprises the Fekola Mine and Fekola Regional asset. B2Gold holds an 80% stake in the Fekola Mine and 65% in Fekola Regional, with the State of Mali owning the remaining shares. The approval follows discussions between B2Gold executives and Malian officials, including Prime Minister Abdoulaye Maïga, to reaffirm their commitment to the governance agreement established in September 2024 for the Fekola Complex.
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Why It's Important?
The approval for underground mining at the Fekola Mine is crucial for B2Gold as it seeks to expand its gold production capabilities. The underground operations are projected to contribute 25,000 to 35,000 ounces of gold in 2025, with expectations for increased output in subsequent years. This expansion is likely to strengthen B2Gold's position in the global gold market, providing economic benefits to both the company and the Malian government. Additionally, the development of Fekola Regional is set to add approximately 180,000 ounces annually from 2026 to 2029, further boosting the region's mining industry and contributing to Mali's economic growth.
What's Next?
Following the approval, B2Gold has commenced stope ore production and processing of stockpiled ore through its mill. Preparatory mining activities at Fekola Regional are expected to begin once permit approvals are secured by the end of Q3 2025. B2Gold has maintained its gold production forecast for the Fekola Complex at between 515,000 to 550,000 ounces for 2025. The company will continue to engage in discussions with Malian officials to ensure the smooth progression of its mining operations and explore further opportunities for expansion.
