The power solutions landscape for Allied Gold shifted significantly after the company signed a new mining convention with the Mali Government last year.
In February, Allied Gold signed a deal with United Arab Emirates-based Ambrosia Investment. The agreement would give Ambrosia a 50% ownership stake in the Sadiola mine in return for implementing a new power infrastructure to reduce operational costs. The deal includes approximately $500 million in consideration, with $250 million to be paid upfront in cash.
However, the transaction has not yet been finalized. Marrone stated that while it could close as early as June, the company remains open to exploring other alternatives. He explained: “Our position in the country has changed dramatically along with gold prices. The world has changed since we put the deal together.”
The gold market has seen a sharp increase, with prices rising nearly 30% since the beginning of the year. On April 22, gold reached a historic high of $3,500.05 per ounce. This surge has created new business opportunities, prompting companies like Allied Gold to reconsider existing agreements.
Ambrosia Investment has not provided a public comment on the current status of the deal.
Marrone noted that the company’s energy strategy was influenced by a new mining convention signed with the Malian government last year. The new framework altered the conditions under which mining firms operate in Mali, Africa’s third-largest gold producer. The government has been actively seeking increased revenue from the sector and expects foreign companies to comply with updated national regulations.
In the broader context, Mali’s government is currently in a dispute with another Canadian miner, Barrick Mining. Barrick has not signed the new mining code and is pursuing arbitration through the World Bank, following a potential government claim over its Loulo-Gounkoto gold project.
Allied Gold has taken a different approach, opting to align with the government’s direction. Marrone said: “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.”
As conditions evolve, Allied Gold continues to review the most effective strategies to optimize operations at Sadiola, balancing investor returns with long-term operational stability in Mali.
