Gold production in Mali to continue despite crisis:Mining companies

Artisanal gold miner Mamadou Diarra pans for gold at a small scale mine in Kalana, file. REUTERS/Joe Penney/File Photo

Gold mining companies in Mali reassured investors on Wednesday that their operations were continuing as normal despite a deepening political crisis in the West African nation.

A day after President Ibrahim Boubacar Keita resigned on Tuesday and dissolved parliament hours after soldiers detained him at gunpoint and seized power in a coup; Foreign companies mining in the gold-rich country said they were monitoring the situation but operations were unaffected by the coup in the capital Bamako and staff were safe.

According to Canadian gold miner B2Gold (BTO.TO), no operational days had been lost at its Fekola mine, in which the Malian government holds a 20% stake, and all mine personnel was safe.

B2Gold said Fekola had sufficient supplies to maintain activities through the end of the third quarter “and beyond if needed”.

While Australia’s Resolute Mining (RSG.AX) said the crisis had “no impact” on production at its Syama mine in the south of the country, or on the safety of employees and contractors.

At the same time, London-listed Hummingbird Resources (HUMR.L) said its Yanfolila mine was operating as normal.

However some of the shares fell following the mutiny, Resolute Mining shares fell by more than 14%, Hummingbird dropped 8%, and AngloGold Ashanti fell 3%.

“The company’s security team is in regular contact with the operational and management team regarding the ongoing safety of Hummingbird’s staff, operations and assets,” Hummingbird said in a statement.

Mali produced 61.2 tonnes of gold in 2019, according to the World Gold Council, making it Africa’s fifth biggest producer of the precious metal.

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