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Reuters
8 hours ago
- Business
- Reuters
Canada's Allied Gold could look at options for power supply deal at Sadiola mine
TORONTO, June 9 (Reuters) - Canadian miner Allied Gold could look at alternative options for a power supply deal at its Sadiola mine in Mali following a surge in gold prices and the emergence of new opportunities, its CEO told Reuters in an interview on Monday. The gold miner signed an agreement in February with UAE-based Ambrosia Investment, giving Ambrosia a 50% stake in the mine in return for installing a new power supply system that would have improved the mine's costs. Allied Gold was also supposed to receive $500 million, with approximately $250 million in upfront cash consideration from Ambrosia. The deal is yet to close. Allied Gold CEO Peter Marrone said the deal may close in June, but if it does not, it is because other options have become available to the company. "Our position in the country has changed dramatically along with gold prices," Marrone said. "The world has changed since we put the deal together." Gold prices have surged nearly 30% this year to date and hit a record $3,500.05 per ounce on April 22. Ambrosia Investment did not immediately respond to a request for comment. Marrone said the universe of power solutions for the company changed dramatically after Allied Gold signed a new mining convention with the Mali government last year. Mali is Africa's third-largest gold producer and the military-led government wants to increase revenue from the mining sector. The government believes current arrangements are unfair and has said that foreign multinationals must comply with its demands if they want to continue operating. The country is in dispute with another Canadian miner, Barrick Mining, which is the only gold miner that has not signed Mali's new mining code. Allied Gold said it took a pragmatic approach to settling with the government. "We looked at how best we can deliver returns to our investors, and came to the conclusion that let's take an action based on cooperation and support," Marrone said. Allied Gold, already listed in Toronto Stock Exchange, began its dual listing on Monday on the New York Stock Exchange.
Reuters
07-05-2025
- Business
- Reuters
Mining convoy attacked in Mali on road to Allied Gold's Sadiola mine, sources say
May 7 (Reuters) - A convoy transporting heavy mining equipment from the Malian capital Bamako to Allied Gold's ( opens new tab Sadiola mine came under attack in the Kayes region over the weekend, two people familiar with the incident told Reuters late on Tuesday. The attack points to expanding security risks - and related additional costs - facing mining companies operating in military-led Sahel states that are struggling to contain Islamist militant groups. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. While government and military convoys more frequently come under attack in Mali, attacks on mining equipment have until now been rare. The CEO of Canadian gold miner Fortuna this month told Reuters that increased security concerns due to jihadist threats were among the reasons the company recently decided to exit Mali's neighbour Burkina Faso. In Sunday's attack, two large trucks were set alight, an excavator was damaged and two pick-up trucks were stolen, one of the sources familiar with the incident said. No group has yet claimed responsibility for the attack. The equipment belongs to the local Caterpillar dealer Neemba and had been leased to the subcontractor Mota-Engil, which operates at Sadiola's quarry, the sources said. Eight people present - all employees of Neemba - were unharmed in the attack, which the sources said was disrupted by soldiers from the Malian army who had been nearby. The incident took place between the towns of Diema and Sandare, the sources said. A separate security source confirmed an attack had taken place in that location on Sunday, but was unable to provide further details. Spokespeople for Allied Gold, Neemba and Mota-Engil and a spokesperson for Mali's army did not immediately respond to requests for comment. Mali is one of Africa's largest gold producers, with mining companies including Barrick Gold ( opens new tab, B2GOLD ( opens new tab, Resolute Mining ( opens new tab, Endeavour Mining (EDV.L), opens new tab and Hummingbird Resources active in the gold-rich western and southern regions. In February 2024, three employees of the Canadian miner B2Gold were killed in an attack on a convoy transporting them from the Fekola gold mine in southwest Mali to Bamako, the company said at the time. But two sources with knowledge of that incident told Reuters the buses had been mistaken for a military convoy. Mali, Burkina Faso and Niger have experienced coups in recent years carried out by military officers who vowed to push back jihadist groups affiliated with Al Qaeda and the Islamic State, though rampant insecurity persists in all three countries.
