Suspected terrorists 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 terrorists that have targeted economic assets and foreign investment.

On Saturday, gunmen attacked the mine, for which US-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 sources said. Both asked not to be named.

'Situation under control'

Flagship Gold did not immediately respond to a request for comment.

The ministry spokesperson said 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 abandoned operations over declining output and rising costs. Morila was previously operated by Barrick and AngloGold Ashanti.