Mali government nationalizes abandoned gold mines to regain control of natural resources

From Yahoo Finance: 2025-07-01 05:26:00

Mali’s government has nationalized the Yatela and Morila gold mines left abandoned by their owners, aiming to regain control of its natural resources. Despite being Africa’s second-largest gold producer, Mali struggled to profit from its assets, prompting the move. The nationalization aligns with other West African states leveraging high commodity prices for economic growth.

Military leaders in Mali, in power following coups in 2020 and 2021, declared their intentions to nationalize the mines in 2024. Since then, foreign mining companies in Mali have faced increased taxes, revised contracts, and regulatory scrutiny. The government’s shift towards Russian interests over Western investors is notable amid strong gold prices driven by US trade policies and geopolitical tensions.

The Yatela mine in Kayes and the Morila mine in Sikaso were abandoned due to low gold prices and operational challenges, leaving significant environmental and financial liabilities. The Society for Research and Exploitation of Mineral Resources of Mali (SEMOS) has been established to revive these mines, with operational and financial strategies undisclosed.

Mali initiated the construction of a new gold refinery backed by Russia in June 2025, enhancing its control over natural resources. This move follows the government’s takeover of Barrick’s Loulo-Gounkoto gold complex amid tax and ownership disputes. The country aims to extract value from its mines and assert greater autonomy over its resources.



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