(Ecofin Agency) - Canadian firm Allied Gold operates the Sadiola gold mine in Mali and received a new 10-year mining permit in 2024. The company also owns a nearby deposit which is expected to boost its production in the country.

On January 7, Allied Gold signed an agreement with the Malian government to develop a new gold mine called Korali-Sud, located close to the Sadiola mine. The plant at Sadiola will process ore from Korali-Sud. While the total expected production from Korali-Sud has not been disclosed, Allied Gold has identified around 200,000 ounces of resources.

The Sadiola mine currently produces between 200,000 and 230,000 ounces annually. With the addition of Korali-Sud, Allied Gold aims to increase its gold production in Mali. The company also plans to expand Sadiola's output to 400,000 ounces per year by building a new processing plant for an investment of about $500 million, according to Ilias Keita, Vice President of Allied Gold Mali.

These projects are expected to benefit the Malian government, which anticipates annual sales of CFA120 billion ($188 million) from Korali-Sud. Finance Minister Alousseni Sanou noted that the government will also receive dividends from its 30% stake in the project. The 2023 mining code mandates a 30% state share in mines and an additional 5% for local investors, which applies to both the Sadiola mine and Korali-Sud.

Emiliano Tossou