Toronto-listed Allied Gold has sold a 50% stake in its Malian gold mines to UAE-based Ambrosia Investments Holdings, marking a significant vote of confidence in Mali’s mining sector despite recent tensions between the military government and foreign miners.
Ambrosia announced on Tuesday that it is investing approximately $500 million in Allied Gold. This includes $375 million for half of Allied’s Malian mining operations and $110 million to acquire a 12% stake in the parent company. The investment will help fund the expansion of the Sadiola mine, which produces about 200,000 ounces of gold annually and is undergoing development alongside the Korali-Sud project.
Peter Marrone, chair and CEO of Allied Gold, called the deal a “vote of confidence in the assets” and noted that Ambrosia’s support could strengthen the company’s negotiations with Mali’s government over mining regulations. Ambrosia, led by Ahmed Amer Al Amry of Abu Dhabi-based Al Amry Group, is expected to be a key ally in discussions with local authorities.
Mali’s mining sector has faced challenges since the government introduced a new mining code in August, increasing state royalties. Foreign mining companies have faced detentions and disruptions, including the temporary shutdown of Barrick Gold’s Loulo-Gounkoto mine. Negotiations between the government and miners continue, with Barrick reportedly close to reaching a new agreement.
Despite these challenges, Allied Gold secured a new license for Korali-Sud in September 2024 after paying approximately $110 million. Marrone acknowledged Mali’s challenging business environment but expressed optimism that further discussions could result in more favorable terms for mining companies.
As part of the partnership, Allied and Ambrosia have also signed a power agreement for solar and battery energy to reduce operating costs at the Sadiola mine, enhancing its long-term sustainability and profitability.
