Mali has approved Allied Gold's Korali-Sud project, granting the Canadian company a 35% stake under the country's new mining code.

The Allied Gold deal is expected to generate annual revenue of approximately CFA Fr120bn ($188m).

The Korali-Sud project, part of the Sadiola gold project, is estimated to contain resources of 200,000oz.

Mines Minister Amadou Keita said the project will be managed under the updated mining regulations, according to a report by Bloomberg, citing sources.

Finance Minister Alousseni Sanou highlighted that Mali will gain dividends through “the application of all the texts in force, in particular the 2023 code".

This development is in line with Mali's broader strategy to increase revenue from its mining sector, despite ongoing disputes over the new mining code, which grants both the government and private entities up to a 35% stake in mining operations.

Allied Gold has also commenced the second phase of the Sadiola project after securing a ten-year renewal of its operating licence in October.

The capital for the second phase development of the project is estimated at $500m, according to Allied Gold Mali vice-president Ilias Keita, the report said.

This investment underscores Allied's commitment to expanding its operations in Mali, despite the complex regulatory environment.

In contrast, Barrick Gold has announced a potential temporary suspension of its operations in Mali due to government-imposed restrictions on gold shipments.

Barrick is facing a confiscation order, which presents significant operational challenges and impacts the local economy and workforce.

In December last year, Allied Gold signed a $175m (C$251.99m) streaming agreement with Wheaton Precious Metals International for the Kurmuk mine in Ethiopia.