Flagship Revives Mali’s Morila Mine Under New Mining Code

Flagship Minerals, a New York–based mining company listed on the ASX as FLG, has entered into a landmark agreement with Mali’s state-owned mining company to revive operations at the historic Morila gold mine. Signed in Bamako, this partnership marks the first U.S. investment under Mali’s reformed 2023 mining code, a move that both underscores the enduring global appeal of Mali’s gold assets and signals cautious optimism for renewed foreign participation in the country’s resource sector. The Morila mine, once one of West Africa’s flagship gold producers, is set for a strategic resurgence after years of dormancy, reflecting shifting dynamics in Mali’s mining industry amid evolving geopolitical and regulatory landscapes.

Under the deal, Flagship Minerals will acquire equity in Morila SA, the entity that holds the mining licence and controls estimated gold reserves of approximately 2.5 million ounces. The mine, situated near Sanso in Mali’s Sikasso region, was previously operated by Firefinch Limited until production ceased in 2022 due to declining ore grades and rising operational costs. Following the exit of Firefinch, the Malian government assumed full control of the asset, paving the way for a new partnership model that aligns with the provisions of its updated mining legislation.

The 2023 mining code represents a decisive shift in Mali’s resource governance framework. It grants the state up to a 30% ownership stake in new mining projects and abolishes several long-standing tax exemptions previously enjoyed by foreign operators. This approach reflects a broader wave of resource nationalism sweeping across the Sahel region, where military-led governments have increasingly sought to assert sovereignty over mineral wealth and secure greater fiscal returns for the state. While these changes have raised apprehensions among some Western investors, Russian and Chinese companies have capitalized on the opportunity, deepening their presence through joint ventures and state-backed financing mechanisms.

Flagship’s entry into Mali is particularly timely given the global rally in gold prices, which have surpassed US$4,000 per ounce, providing strong economic justification for reactivating high-grade assets like Morila. The mine’s revival is also critical for Mali’s economy, as the country’s industrial gold production has fallen by nearly a third year-on-year. Government officials have welcomed the agreement as a “win-win partnership,” emphasizing its potential to restore investor confidence, stabilize production levels, and generate employment in the resource-rich Sikasso region.

If executed successfully, the Morila restart could signal a turning point for Mali’s mining sector. It may help balance the government’s ambition for greater control with the need to attract credible international partners capable of deploying capital, technology, and operational expertise. Beyond Mali, this development could also set a precedent for renewed collaboration between U.S.-based mining companies and African nations navigating the complexities of new resource regimes. In the broader West African context, Flagship’s investment reinforces the region’s potential as a frontier for sustainable and strategically aligned mining growth under rising gold prices and evolving political landscapes.

Mini-Glossary

• Equity: Ownership interest in a company, typically represented by shares.
• Resource Nationalism: A policy stance where governments assert greater ownership or control over natural resources to maximize national benefits.
• Mining Code: The legal framework governing how mineral exploration and extraction are conducted in a country.
• Ore Grade: The concentration of valuable minerals within mined material, determining the economic viability of extraction.
• Joint Venture: A business arrangement in which two or more parties share ownership, investment, and operational responsibilities for a specific project.