Faith Nyasuguta
Mali’s military-led government has officially completed its takeover of the Yatela and Morila gold mines – two once-thriving sites that foreign owners abandoned years ago- marking a bold step in its mission to reclaim national control over strategic resources.
The announcement, made this past weekend, is part of a wider wave of resource nationalism sweeping through junta-led West African countries eager to keep more wealth at home.
Yatela, located in western Mali’s Kayes region, was closed in 2016 by the Sadiola Exploration Company, a joint venture between South Africa’s AngloGold Ashanti and Canada’s IAMGOLD. Although gold reserves remained, falling prices and shareholder interests saw foreign operators walk away. Likewise, the Morila mine in the Sikasso region changed hands multiple times before Australia’s Firefinch finally exited in 2022, leaving its vast deposits largely untapped.
Mali is no small player on the continent’s gold map – it is Africa’s second-largest producer, with an annual output of around 65 tons. Yet, despite its production muscle, the country astonishingly lacks an internationally certified gold refinery. This means much of its gold must be exported in raw form, limiting local value addition and revenue.
To change this, the government has partnered with Russia to build a major new gold refinery in the capital, Bamako. Leaders say the refinery, once completed, will allow Mali to refine its own gold to international standards, reduce dependence on raw exports, and generate much-needed revenue at home. The refinery project is seen as a key symbol of Mali’s push to assert economic sovereignty while pivoting toward new global alliances.
But the assertive approach is not without risks. Earlier this year, the government also moved to place Barrick Gold’s massive Loulo-Gounkoto complex under state control, escalating disputes over taxes, ownership rights, and profit-sharing. Such actions have rattled foreign investors and raised questions about Mali’s long-term mining stability.
President Assimi Goita’s administration says these bold measures could boost government income by an estimated $950 million annually – nearly 20 percent of the national budget. Officials insist that by tightening control over gold mining and refining, Mali can ensure its citizens benefit more directly from the country’s natural wealth.
As gold prices soar and geopolitical alliances shift, Mali’s determination to write its own mining story could reshape not just its economy but its role in Africa’s wider resource ecosystem.
RELATED:
