Flagship Gold and Mali Sign Agreement to Restart Morila Gold Mine Amid Rising Gold Prices

What's Happening?

Flagship Gold, a New York-based company, has partnered with Mali's state-owned Mineral Resources Research and Exploitation Company (SOREM) to restart production at the Morila gold mine. This agreement marks the first U.S. investment under Mali's new mining code, adopted in August 2023. The Morila mine, located in the Sikasso region, contains estimated reserves of 2.5 million ounces of gold. The partnership allows Flagship Gold to acquire equity in Morila SA, the operating company. The deal comes at a time when gold prices have surged, recently surpassing $4,000 an ounce, making the revival of the mine economically attractive. The agreement reflects a wave of resource nationalism across the Sahel, with military-led governments tightening control over mineral assets.

Why It's Important?

The revival of the Morila mine is crucial for Mali's gold sector, which has experienced a significant decline in production. Industrial gold output fell 32% year-on-year, totaling 26.2 tonnes by the end of August 2025. The partnership with Flagship Gold is expected to stabilize Mali's gold production and boost the country's economy. The new mining code increases state control by allowing up to 30% ownership in new projects and removing key tax exemptions, which has caused concern among foreign investors. However, the collaboration with Flagship Gold suggests that international investors still see value in Mali's mineral resources, potentially encouraging other companies to invest in the region.

What's Next?

The partnership is expected to lead to the resumption of full-scale production at the Morila mine, with Flagship Gold providing capital and technical expertise. The collaboration is described as a 'win-win' model that enhances national mining sovereignty while attracting responsible foreign investment. Mali's government underscores that the new mining code is designed to secure a fairer share of the country's mineral wealth, even as the nation faces declining production and persistent insecurity. The revival of Morila is regarded as a critical step toward stabilizing the sector, and the agreement raises hopes for the future of mining in Mali.

Beyond the Headlines

The partnership occurs against a backdrop of growing resource nationalism across the Sahel, where military-led governments in Mali, Burkina Faso, and Niger have increased control over gold and uranium assets. While some Western investors have expressed concern over these reforms, Russian and Chinese companies have expanded their presence through state-backed agreements. The new mining code aims to secure a fairer share of Mali's mineral wealth, reflecting the country's strategic approach to resource development and its willingness to collaborate with Western investors despite geopolitical shifts.