Toronto-based Allied Gold has made a significant move by selling a 50% stake in its Malian mines to an investment group from the UAE. This deal marks a positive sign for Mali’s mining industry, especially after a period of unrest between the military government and mining companies operating in the region.
Recently, several employees from foreign mining companies faced imprisonment, and the country’s largest gold mine, the Loulo-Gounkoto project operated by Barrick Gold, was shut down last month. This shutdown followed the enforcement of a new mining code that raises the royalties paid to the Malian government.
On Tuesday, Ambrosia Investments Holdings announced that it is investing around $500 million into Allied Gold; this includes a $375 million payment for the 50% stake in Allied’s mines and an additional $110 million for a 12% stake in the parent company.
Allied Gold owns the Sadiola mine, which produces about 200,000 ounces of gold each year and is currently expanding. The company is also working on developing another mine nearby called Korali-Sud.
Peter Marrone, the chair and CEO of Allied Gold, expressed that this investment demonstrates confidence in their assets and will support the expansion of the Sadiola mine. He believes that the backing from Ambrosia will assist the company in negotiating better operating conditions with the Malian government.
Ambrosia, which was recently established, is led by Ahmed Amer Al Amry, who also oversees the Al Amry Group in Abu Dhabi, a company involved in various sectors including construction and automotive parts.
Marrone emphasized that this investment illustrates that there are still investors willing to commit to Mali, even as others have pulled back. His comments highlight the importance of Ambrosia as a partner in discussions with the government.
In August, Mali’s military government implemented a new mining code and entered negotiations with mining companies to enforce the updated regulations. The chief executive of Anglo-Australian gold miner Resolute Mining was imprisoned for ten days during these negotiations and only released after reaching an agreement.
Barrick Gold continues to negotiate with the government while facing challenges, with several of its employees still detained. The company has not commented on the status of talks.
Marrone acknowledged that conducting business in Mali remains challenging, citing the country’s high share of mining revenues. However, he remains hopeful that negotiations could lead to improved terms attracting new investment.
Allied Gold was among the first firms to secure an agreement with the junta after they took control in September 2024, paying roughly $110 million and receiving a new license to operate the Korali-Sud project.
Additionally, Allied and Ambrosia have established a power agreement to supply the Sadiola mine with electricity from solar and battery sources, which is expected to reduce operating costs significantly.