Mali has recently taken control of the Yatela and Morila gold mines, which were previously abandoned by their foreign owners. This move reflects a growing trend among junta-led West African nations to reclaim control of strategic natural resources and capitalize on the rising gold prices to strengthen their economies and reduce foreign dependency.
Mali, being Africa’s second-largest gold producer with an annual output of approximately 65 tons, lacks an internationally certified gold refinery. To address this issue, the country has initiated the construction of a new gold refinery with the backing of Russia, aimed at gaining greater control over its natural resources.
However, the future of these bold reforms remains uncertain. The Yatela mine, located in western Mali’s Kayes region, was closed in 2016 by Sadiola Exploration Company due to low prices, despite having unexploited reserves. Similarly, the Morila mine in the Sikasso region was abandoned in 2022 by Australia’s Firefinch, which had acquired stakes from Barrick Gold and AngloGold Ashanti.
The government has also taken control of Barrick’s Loulo-Gounkoto gold complex, leading to tensions over taxes and ownership rights. This signals potential confrontations with international mining firms in the future.
Since seizing power in 2020, Mali’s military government has pledged to revamp the mining sector to ensure the state receives a larger share of gold revenues. These reforms are expected to increase annual government income by around $950 million, representing nearly 20% of the national budget.
In conclusion, Mali’s efforts to assert control over its gold mines and implement reforms in the mining sector demonstrate a strategic shift towards economic independence and self-sufficiency. Despite facing uncertainties and challenges, the country is determined to leverage its natural resources for the benefit of its people and economy.
