The Malian government is set to assume control of the Morila gold mine following the resolution of a dispute involving Australian mining company Firefinch and local subcontractor Entreprise Générale Traoré et Frères SARL (EGTF).
In May, Firefinch sold the Morila mine to Mali’s state-owned Société de Recherche et d’Exploitation des Ressources Minérales du Mali (SOREM-SA) for a symbolic $1, citing insufficient funds to sustain operations. However, the deal faced delays after EGTF initiated arbitration to recover 12.84 billion FCFA ($20.7 million) in unpaid debts.
On November 20, Firefinch announced that EGTF had withdrawn its arbitration claim, allowing the transaction to move forward. Firefinch chairman Brett Fraser reiterated the company’s stance that the claim lacked merit, adding that the resolution would enable Firefinch to finalize the sale and focus on returning value to its shareholders.
With the withdrawal of the complaint, Mali’s mining company SOREM-SA is now poised to take ownership of the mine, which has produced over 7.5 million ounces of gold in the past 20 years.
This development follows Mali’s recent acquisition of the Yatela gold mine from foreign companies AngloGold and IAMGOLD, reflecting the country’s push for greater control over its mining sector.
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Under Mali’s revised mining code introduced in 2023, the government increased its stake in mining projects from 20% to 30%. Authorities believe the move will enhance the sector’s contribution to the economy, where mining accounts for 10% of GDP and a quarter of government revenue.
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