(Ecofin Agency) - The Fekola mine, Mali’s second-largest gold mine, is expected to produce a maximum of 450,000 ounces in 2024. B2Gold, its owner, discovered a new deposit 20 km away and has secured the application of the 2023 mining code for this project.

On September 11, 2024, Canadian miner B2Gold announced it had signed an agreement with the Malian government to keep mining gold at its Fekola project. This agreement states that the 2023 mining code will apply to the new Fekola Regional deposit. 

B2Gold Reaches Agreement on Terms with Mali Government Relating to the Framework for the Fekola Complex; Approvals for Fekola Regional and Fekola Underground to be Expedited. Full news release here: https://t.co/ZZ94CxyysZ pic.twitter.com/JVCtO2kjv1

— B2Gold Corp. (@B2GoldCorp) September 12, 2024

The Fekola Regional deposit is situated about 20 km from the main mine. The new deposit could produce between 80,000 and 100,000 ounces of gold annually by 2025. 

The 2023 mining code aims to increase mining revenues for the Malian government. It allows for a maximum of 30% State ownership and 5% for local investors and could generate an additional 500 billion FCFA ($840 million) in annual revenue for the government.

However, the original 2012 mining code will still apply to the Fekola mine, which began production in 2017 and will remain in effect until 2040. The government has converted its 20% stake in the Fekola mine from ordinary shares to preference shares, giving it priority in dividend distribution.

Fekola is expected to deliver between 420,000 and 450,000 ounces of gold this year, making it Mali's second-largest gold mine.

Emiliano Tossou