UAE investor buys stake in Mali gold mines from Canada’s Allied Gold | USAEMALL.com

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Toronto-listed Allied Gold has sold a 50 per cent stake in its Malian mines to an Emirati investor, in the biggest sign of confidence in Mali’s mining sector after months of conflict between the military junta and miners operating there.

Employees of several foreign mining companies have been jailed and the country’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 increases the royalties paid to the state.

Emirati group Ambrosia Investments Holdings said 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 parent company.

In Mali, Allied owns the Sadiola mine, which produces around 200,000 ounces of gold annually and is undergoing an expansion. The company is also developing a new mine nearby at Korali-Sud.

Peter Marrone, chair and chief executive of Allied Gold, said the deal was “a vote of confidence in the assets” and would help to fund the expansion of the Sadiola mine. Backing from the United Arab Emirates investor would help the company in its discussions with the Malian government to improve the terms under which it operates in the country, he added.

Ambrosia, a newly formed company, is headed by Ahmed Amer Al Amry, who also runs Abu Dhabi-based Al Amry Group, which has a portfolio of businesses ranging from construction to automotive parts.

“This deal should make clear that there are investors willing to invest in Mali when others are not,” said Marrone, emphasising that Ambrosia would be a powerful ally in discussions with the government.

Mali’s military government adopted a new mining code last August, and embarked on a series of negotiations with miners to enforce the new measures in the autumn.

The chief executive of Anglo-Australian gold miner Resolute Mining was jailed for 10 days during the negotiations last year, and was released only after a deal was struck. Terry Holohan resigned from the company this month.

Barrick Gold, the largest miner in Mali, is still engaged in negotiations with the government but is getting close to a deal, according to people familiar with the talks. Four of its employees remain in prison and the company declined to comment on the discussions.

Marrone conceded that Mali was “still a difficult place to do business” and said the state’s take of mining revenues was “among the highest in the world”. He hoped that could change through further 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,” said Marrone, who previously founded and chaired Yamana Gold.

Allied Gold was one of the first companies to reach an agreement with the junta, in September 2024, under which it paid around $110mn and received a new licence for its Korali-Sud project.

Allied and Ambrosia have also signed a power agreement for one of Ambrosia’s related companies to provide power to the Sadiola mine using solar and batteries, which will lower operating costs.