Flagship Gold partners with Mali for Morila gold mine revival

Core Insights - Flagship Gold has partnered with Mali's state-owned miner SOREM to restart production at the Morila gold mine, marking the first US investment under Mali's new mining code adopted in August 2023 [1][3] - The Morila mine has estimated reserves of 2.5 million ounces of gold [1] - The mine was previously taken over by the state after Firefinch Limited abandoned operations due to declining output and rising costs [2] Company Developments - The agreement signed on October 9 allows Flagship to acquire equity in Morila SA, the operating company of the mine [1] - Mali's new mining code increases state control, allowing up to 30% ownership in new projects and removing key tax exemptions, which has raised concerns among foreign investors [3][4] - Despite regulatory challenges, Russian and Chinese companies have expanded their presence in Mali through state-backed deals [4] Industry Context - The revival of the Morila mine coincides with a surge in gold prices, recently surpassing $4,000 per ounce [5] - Mali, despite being one of Africa's top gold producers, has seen a 32% year-on-year decline in industrial gold production, totaling 26.2 tonnes by the end of August [5]