(Ecofin Agency) - Mali has granted a 10-year mining permit for the Sadiola gold mine, which was set to expire on August 1, 2024. The mine produced 171,007 ounces of gold in 2023 and is expected to average 200,000 ounces annually until 2028, with potential long-term production of 300,000 to 400,000 ounces, yearly.

On October 9, 2024, Mali's Council of Ministers approved a draft decree renewing the operating permit for the Sadiola gold mine for 10 years. The new permit allows a subsidiary of Canada's Allied Gold to continue its operations at the mine. Sadiola produced 171,007 ounces of gold in 2023.

The renewal follows a new partnership agreement signed in September between the government and Allied Gold. At the time, the company had said the collaboration would comply with Mali's new mining code. Under this code, the government can hold up to 30% of Sadiola, while local investors can acquire up to 5%.

The Council of Ministers stated in a communiqué that the government has begun reforms in the mining sector, leading to a review of all mining agreements during the exploitation phase to improve the sharing of mining revenues. This review also addressed the operational practices at Sadiola and compliance with current financial regulations.

Mali expects the Sadiola gold mine, along Robex Resources' Nampala and B2Gold's Fekola mines, to generate an additional CFA245 billion ($410 million) in annual revenue. Active since 1997, Sadiola is projected to keep producing gold production over the next decade. 

This year, Allied Gold eyes an output of 195,000-205,000 ounces at Sadiola, with an average of 200,000 ounces per year until 2028. Long-term production is expected to reach 300,000 to 400,000 ounces annually, with a current mine life of 19 years.

Emiliano Tossou