By Portia Crowe
Jan 5 (Reuters) - Suspected jihadists attacked the Morila gold mine in Mali at the weekend, burning equipment and taking seven employees hostage before releasing them, an official from the mining ministry told Reuters on Monday.
The attack highlights mounting security risks in Mali, Africa’s third-largest gold producer, which is battling al Qaeda-linked jihadists that have targeted economic assets and foreign investment.
Armed men on Saturday attacked the mine, for which U.S.-based Flagship Gold signed an investment agreement last year, a spokesperson for Mali's mines ministry and another person familiar with the matter said. They burned equipment and took seven employees hostage, but released them all the following evening, the people said.
Both asked not to be named.
Flagship Gold did not immediately respond to a request for comment.
No mine employees were killed, the ministry spokesman said, adding that the army has since taken control of the situation and was conducting a sweep of the area.
New York-based Flagship Gold, which incorporated in June 2024, signed a partnership agreement with Mali's state-owned mining company in October to restart production at the Morila gold mine.
Located in Mali's southern Sikasso region, it holds estimated reserves of 2.5 million ounces, according to the mines ministry.
It was taken over by the state after Australia's Firefinch N9F.LAS abandoned operations over declining output and rising costs. Morila was previously operated by Barrick ABX.TO and AngloGold Ashanti AU.N.
Western countries, including Britain, France and the United States, have urged their citizens to leave the landlocked West African country as concerns have mounted over security.
(Reporting by Portia Crowe; Additional reporting by Maxwell Akalaare Adombila; editing by Barbara Lewis)
((portia.crowe@thomsonreuters.com))
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