Mali's Gold Mines: Nationalization Steps Amid Challenges

Mali has completed its takeover of the Yatela and Morila gold mines, a move marking the government's attempt to control natural resources. The announcement, made over the weekend, raises questions about how the operations will be funded to unlock any untapped value that remains in these assets.

The nationalization follows the military's takeover of power in 2020 and 2021, leading to increased pressure on foreign mining companies through higher taxes and revised contracts. This aligns Mali with other West African nations, such as Burkina Faso and Niger, in seeking to leverage high gold prices, while also shifting alliances from Western to Russian investors.

Despite producing 65 tons of gold annually, making it Africa's second-largest producer, successfully exploiting Mali's gold assets has been challenging. The newly established Society for Research and Exploitation of Mineral Resources of Mali (SEMOS) will revive the mines, though details on financing remain unclear, amidst efforts to contend with Barrick Mining's contested assets.

(With inputs from agencies.)