UAE investor buys stake in Mali gold mines from | World Mining

UAE investor buys stake in Mali gold mines from – World Mining News

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Toronto-listed Allied Gold has bought a 50 per cent stake in its Malian mines to an Emirati investor, in the most important signal of confidence in Mali’s mining sector after months of battle between the navy junta and miners working there.

Employees of a number of overseas mining firms have been jailed and the nation’s largest gold mine — the Loulo-Gounkoto project owned by Barrick Gold — was shut down last month as Mali enforced a new mining code that will increase the royalties paid to the state.

Emirati group Ambrosia Investments Holdings stated on Tuesday that it was investing about $500mn into Allied Gold, agreeing to pay $375mn for a 50 per cent stake in Allied’s mines in Mali, and $110mn to buy a 12 per cent stake in the listed mum or dad company.

In Mali, Allied owns the Sadiola mine, which produces round 200,000 ounces of gold yearly and is present process an enlargement. The company can be developing a new mine close by at Korali-Sud.

Peter Marrone, chair and chief govt of Allied Gold, stated the deal was “a vote of confidence in the assets” and would help to fund the enlargement of the Sadiola mine. Backing from the United Arab Emirates investor would help the company in its discussions with the Malian authorities to improve the phrases beneath which it operates in the nation, he added.

Ambrosia, a newly shaped company, is headed by Ahmed Amer Al Amry, who additionally runs Abu Dhabi-based Al Amry Group, which has a portfolio of companies ranging from construction to automotive components.

“This deal should make clear that there are investors willing to invest in Mali when others are not,” stated Marrone, emphasising that Ambrosia can be a highly effective ally in discussions with the federal government.

Mali’s navy authorities adopted a new mining code last August, and launched into a sequence of negotiations with miners to implement the new measures in the autumn.

The chief govt of Anglo-Australian gold miner Resolute Mining was jailed for 10 days during the negotiations last 12 months, and was launched solely after a deal was struck. Terry Holohan resigned from the company this month.

Barrick Gold, the biggest miner in Mali, continues to be engaged in negotiations with the federal government however is getting close to a deal, in accordance with people conversant in the talks. Four of its workers stay in jail and the company declined to touch upon the discussions.

Marrone conceded that Mali was “still a difficult place to do business” and stated the state’s take of mining revenues was “among the highest in the world”. He hoped that would change by additional discussions.

“We can hopefully come to a better conclusion on what is a proper split that will encourage new investment to come into the country,” stated Marrone, who beforehand based and chaired Yamana Gold.

Allied Gold was one of the primary firms to succeed in an settlement with the junta, in September 2024, beneath which it paid round $110mn and obtained a new licence for its Korali-Sud project.

Allied and Ambrosia have additionally signed a energy settlement for one of Ambrosia’s associated firms to offer energy to the Sadiola mine utilizing photo voltaic and batteries, which can decrease working prices.

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