Mali Completes Takeover of Abandoned Gold Mines Amid Economic Challenges

Mali’s military government has completed the takeover of the Yatela and Morila gold mines, previously abandoned by their owners. The move is part of the country’s efforts to regain control of its natural resources and boost its economy amid high commodity prices.

The takeover highlights the complex challenges facing Mali as it seeks to leverage its gold reserves, with questions remaining over how the government will fund and manage the mines. The mines were abandoned due to low gold prices and significant environmental and financial liabilities.

The newly established Society for Research and Exploitation of Mineral Resources of Mali (SEMOS) will be responsible for reviving the mines. However, extracting value from the mines will be a difficult task, especially as the government is also embroiled in a dispute with Barrick over its Loulo-Gounkoto gold complex.

Mali is Africa’s second-largest gold producer, generating around 65 tons annually. The country’s military leaders have been pressuring foreign mining companies through increased taxes and revised contracts, marking a shift towards Russian interests and away from Western investors.