BAMAKO, July 29 (Reuters) - London-listed Endeavour

Mining ( EDVMF ) and two other gold producers have agreed to

migrate to Mali's new mining code, government officials said.

The code, which raises taxes and seeks to hand over big

stakes in mining assets to the state, sparked bitter disputes

with mining companies after it was implemented in August 2023,

helping drive Mali's gold output down 23% last year to 51 metric

tons.

Finance Minister Alousseni Sanou and the Minister of Mines

announced the new memorandum of understanding with Somika SA -

which is 80%-owned by Endeavour and 20% by the Malian state -

Faboula Gold and Bagama Mining on state television late Monday.

No terms of the deals were disclosed.

The three companies account for only a fraction of Mali's

gold output, with Faboula and Bagama launching output in 2021

with 500 kg each and the Kalana project operated by Somika yet

to start production. All three have been largely inactive since

the mining code was adopted.

Somika director Abdoul Aziz said construction of the

company's mine "will begin six months after the signing of the

agreement, and production will start 18 months later".

"Somika has a lifespan of 10 years and a turnover of 135

billion CFA francs ($238.9 million) annually. Bagama and Faboula

each have five-year lifespans with turnovers of 50 billion and

75 billion CFA francs," Sanou said, adding that each company is

expected to create around 2,000 jobs.

Endeavour Mining ( EDVMF ) declined to comment. Faboula Gold and

Bagama Mining could not be reached for comment.

Mali's biggest gold miner, Barrick Mining ( B ),

suspended operations in the Loulo-Gounkoto complex in

mid-January after the government blocked its exports, detained

some of its executives, and seized three tonnes of bullion.

The Canadian miner remains locked in dispute with the

government, having since launched arbitration proceedings at the

World Bank's International Centre for Settlement of Investment

Disputes (ICSID).

Mali is one of Africa's top gold producers, but regulatory

uncertainty has weighed on investment and output.

($1 = 565.0000 CFA francs)